S&P changes Exterion view to negative

S&P said it revised the outlook on Doubleplay I Ltd., the holding company of Exterion Media, to negative from stable and affirmed its B long-term corporate credit rating.

The agency also affirmed the B issue rating on the group's £150 million six-year term loan B and the £40 million multicurrency, five-year revolving credit facility taken on by Exterion Media Holdings Ltd. The recovery rating is 3, indicating an expectation of meaningful (50%-70%; rounded estimate 65%) recovery prospects in the event of a payment default.

S&P said the outlook revision reflects its view that Exterion Media's operating performance – and, in turn, debt protection metrics – could feel the weight of mounting uncertainties in the British economy in the wake of Brexit.

“We anticipate that the first repercussions on U.K.-based companies will materialize over the next 12-18 months, and we believe that Exterion Media's performance metrics are likely to weaken if the group cannot increase revenues over this period,” S&P said in a news release.

“As such, we anticipate that revenues for 2017 will be about £370 million-£380 million compared with our initial assumptions of £415 million-£420 million.”

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