(The following statement was released by the rating agency)
Oct 09 -
-- 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.
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
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.