TEXT-S&P revises Mood Media outlook to stable; affirms 'B' rating

Tue Oct 9, 2012 9:09am EDT

(The following statement was released by the rating agency)

Oct 09 -

Overview

-- Canada-based in-store media company Mood Media Corp. is proposing to issue $350 million of senior unsecured notes.

-- We understand that Mood Media will use the proceeds to prepay some of its outstanding debt as well as to fund acquisitions.

-- We are revising the outlook on Mood Media to stable from positive and affirming our 'B' long-term corporate credit rating on the company.

-- The stable outlook reflects our view that Mood Media will maintain its solid market position and successfully integrate its 2012 acquisitions while maintaining meaningful positive free cash flow generation.

Rating Action

On Oct. 9, 2012, Standard & Poor's Ratings Services revised the outlook on Canada-based in-store media company Mood Media Corp. to stable from positive. At the same time, we affirmed our 'B' long-term corporate credit rating on Mood Media.

In addition, we assigned our 'B-' long-term debt rating to Mood Media's proposed $350 million senior unsecured notes, which are likely to have a tenor of eight years. We have assigned a recovery rating of '5' to the proposed notes, indicating our expectation of "modest" (10%-30%) recovery for noteholders in the event of a payment default.

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