TEXT-S&P upgrades W.R. Berkley Ins. (Europe) to 'A+'

Fri Sep 14, 2012 12:58pm EDT

Sept. 14 - Standard & Poor's Ratings Services said today that its ratings on Newport, Ky.-based media company FoxCo Acquisition Sub LLC's proposed amended-and-extended senior secured credit facilities remain unchanged following the company's $50 million increase, bringing the total amount of the proposed term loan to $765 million. Our issue-level rating on the proposed bank debt remains 'B+' (the same as our 'B+' corporate credit rating on the company) and the recovery rating remains at '3', indicating our expectation of meaningful (50% to 70%) recovery for lenders in the event of a payment default. The net proceeds of the amended and extended term loan will be used to repay its senior notes due 2015 and to pay a dividend. The company's pro forma debt to average trailing-eight-quarter EBITDA, at 6.2x based on June 30, 2012 EBITDA, is above our 6x leverage target for the rating. We expect leverage will moderate back under our target over the near term. If we become convinced that leverage will remain above 6x we could revise the outlook to negative or lower the rating. (For the complete corporate credit rating rationale, see the research update on FoxCo, published Sept. 6, 2012, on RatingsDirect.) RELATED CRITERIA AND RESEARCH

-- Methodology And Assumptions: Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011

-- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009

-- Business Risk/Financial Risk Matrix Expanded, May 27, 2009

-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008 RATINGS LIST FoxCo Acquisition LLC FoxCo Acquisition Sub LLC Corporate credit rating B+/Stable/-- FoxCo Acquisition Sub LLC $765 mil. Extended Term Loan B due 2017 B+

Recovery rating 3 Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column. Primary Credit Analyst: Jeanne L Shoesmith, CFA, Chicago (1) 312-233-7026;

jeanne_shoesmith@standardandpoors.com Secondary Contact: Naveen Sarma, New York (1) 212-438-7833;

naveen_sarma@standardandpoors.com

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