Moody's ups InfoUSA view to stable

Moody's Investors Service said it affirmed all of InfoUSA Inc.'s credit ratings at Ba3, including the corporate family rating, the $50 million senior secured revolving credit facility due 2007, the $94 million senior secured first-lien term loan A due 2009 and $69 million senior secured term loan B due 2010.

The outlook was changed to stable from negative.

Moody's placed the company on negative outlook on June 21 in connection with an offer by Vin Gupta, chairman and chief executive officer of the company, to acquire all of the publicly held common shares of InfoUSA in a debt-financed transaction.

Although the offer was subsequently rejected and withdrawn, the negative outlook reflected the heightened risk of a capital structure transaction that could significantly increase leverage, the agency said.

The change in outlook to stable reflects Moody's belief that InfoUSA is not considering a transaction that will significantly increase leverage and anticipates a conservative financial profile over the intermediate term.

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