DBRS cuts Yellow Media

DBRS said it downgraded Yellow Media Inc.'s issuer rating to B (high) from BB; its medium-term notes to B (high) from BB, with an RR4 recovery rating; its exchangeable subordinated debentures to B (low) from B (high), with an RR6 recovery rating; and its cumulative preferred shares to Pfd-5 (low) from Pfd-4 (low). The trend on all ratings remains negative.

DBRS notes that Yellow Media's unsecured debt continues to have average recovery prospects (RR4; 30% to 50% expected recovery), while its subordinated debt has poor recovery prospects (RR6; 0% to 10% expected recovery) under a base case default/recovery scenario.

The agency said the downgrade reflects recent actions taken by Yellow Media that may indicate that its business transformation may take longer than previously anticipated, while its debt maturities over the medium term remain significant.

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