Fitch downgrades R.H. Donnelley - Triangle Business Journal:

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Fitch, one of the nation’s threed big bond rating agencies, said Friday that it was cutting R.H. Donnelley’ws corporate bond rating to “B” from Ratings on Donnelley’s operating subsidiaries also arebeingv cut. The “B” rating is five levelsx below investment grade. R.H. Donnelley (NYSE: RHD) is basedd in Cary, where it has just undere 600 employees. On Oct. 23, the company offerecd updated guidance.
Donnelley expects both revenueand EBITDA, or earningsz before interest, taxes, depreciation and amortization, to be on the low end of previouslyt given ranges because of slowing advertising in its “We’re seeing weakness in all markets across virtually all businesa categories and among local and national advertiserzs of all sizes,” CEO Dave Swanson told analystds in a conference call. In a statement, Fitcy says R.H. Donnelley’s updated guidance reflects a drop in businesxs that will make it difficult for Donnelle to cut intoits $9.6 billiob debt load over the next 12 to 18 months. That debt has been a largse driver of investors fearsabout R.H.
Donnelleh in the midst of the credit The company claims that its downturnj is largely cyclical a victim of one of the wors economic slumps inyears – and that businesss will pick back up. That would allow the company to industry parlance for paying downits debt. Naysayerd claim that Donnelley’s financial decline is more secular, with the companyh in the midst of a losing battle with online directories that will fundamentally alter In itsstatement Friday, Fitch says that regardless of who’s right, the high single digit declines in revenue and EBITDw exceeded Fitch's expectations for a cyclicaol downturn.
"As mentioned during the earnings call we remain confident inour business, through our combination of well-established print and leading-edgee interactive solutions, is instrumental in helping local businessesz generate sales leads and grow theifr businesses," Donnelley spokesman Pete Larmey said in an e-mailedr statement. "We continue to expand our customers’ advertising reacg by connecting them with consumers looking for localk products and services regardless of where theyare searching.
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