S&P upgrades Infogroup

S&P said it raised the rating on Infogroup Inc.'s senior secured debt to B from B- and revised the recovery rating to 2 from 3.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The agency also said it affirmed the company’s B- corporate credit rating.

The outlook remains stable.

The ratings reflect the company's smaller scale and exposure to cyclical marketing spending, secular pressure on its traditional marketing services and an expectation for modest cash flow deficits in 2016, S&P said.

The stable outlook considers an expectation that Infogroup will have continued revenue and EBITDA growth, modest discretionary cash flow deficits and an at least 10% margin of compliance with its maintenance financial covenants, the agency said.

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