S&P ups Vericast, rates loan B-

S&P said it raised Vericast Corp.’s issuer rating to CCC+ from CCC, boosted its $54 million term loan to B+ and assigned a B- rating to its extended $1.1 billion first-lien term loan.

Concurrently, the agency removed the issuer and the $54 million term loan ratings from CreditWatch with positive implications where they were placed on Aug. 9.

S&P also affirmed the B- issue-level rating on the company's $1.2 billion first-lien notes and the CCC- issue-level rating on its $439 million second-lien notes.

The ratings actions follow Vericast refinancing its debt structure and pushing most of its funded debt maturities to 2026 and 2027, the agency said.

However, the outlook is negative. “The negative outlook reflects the secular decline and ongoing operating challenges for print-based products and Vericast's substantial debt fixed charges after its refinancing. While the refinancing alleviated near-term maturity risk, we view the capital structure as unsustainable longer term and expect additional operating challenges could increase the risk of a distressed exchange or restructuring,” S&P said in a press release.

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