S&P revises Time outlook to negative

Standard & Poor's said it revised the outlook on Time Inc. to negative from stable and affirmed the BB corporate credit rating.

At the same time, the agency affirmed its BBB- issue-level rating on the senior secured credit facility. The recovery rating remains 1, indicating an expectation for very high (90% to 100%) recovery in the event of a payment default.

S&P also affirmed the BB issue-level rating on Time’s senior unsecured notes. The recovery rating remains 3, indicating an expectation for meaningful (50% to 70%; higher half of the range) recovery in the event of a payment default.

Additionally, the agency revised its liquidity assessment on the company to “strong” from" adequate."

"The outlook revision reflects our revised forecast, which includes our expectation for credit measures to be on the lower end of our rating threshold, and incorporates our concern that worsening industry trends or operational challenges could delay financial deleveraging," S&P credit analyst Minesh Patel said in a news release.

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