COMUNICATO STAMPA Moody`s alza il rating di Seat Pagine Gialle

COMUNICATO STAMPA
Moody’s alza il rating di Seat Pagine Gialle:
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Migliora il corporate rating a Ba3 da B1 con giudizio di stabilità
Sale a B2 da B3 il rating del debito subordinato
Milano 27 giugno 2006 – Migliora il rating di Moody’s nei confronti di Seat Pagine Gialle, che
oggi ha attribuito complessivamente un corporate rating di Ba3 da B1 con un giudizio di stabilità
e ha alzato il rating relativo al debito subordinato da B3 a B2.
L’innalzamento dei rating da parte di Moody’s testimonia la capacità di Seat PG di migliorare la
gestione operativa e finanziaria e di generare costantemente elevati livelli di liquidità, che hanno
permesso negli anni alla società di abbassare il livello di indebitamento riducendo il leverage a
5,7x nel 2005 da 6,4x nel 2004 e 6,9x nel 2003.
Moody’s riconosce, inoltre, la forza di Seat nei mercati in cui opera, che la vede leader nel
settore delle directories in Italia e in seconda posizione attraverso Thomson Directories in UK, e
in seconda posizione nel mercato della Directory Assistance in Germania.
Si ricorda, inoltre, che nei giorni scorsi anche Fitch Ratings si è aggiunta a Moody’s e S&P
nell’assegnare il merito di credito a Seat PG, attribuendo un rating di BB al debito senior e un
rating di B+ al debito subordinato della società con un corporate rating di BB- e giudizio di
stabilità.
(Per completezza d’informazione si allega il comunicato di Moody’s)
*****
Comunicazione Seat Pagine Gialle
Tel. +39.011.435.3030 – fax +39.011.435.3040
[email protected]
Investor Relations Seat Pagine Gialle: +39.011.435.2600 Affari Legali e Societari Seat Pagine Gialle S.p.A.
[email protected]
[email protected]
Barabino & Partners: Tel.+39 02 72.02.35.35 - Fax +39 02 89.00.519
Benedetta Spada – [email protected]
Global Credit Research
Rating Action
27 JUN 2006
Rating Action: Seat Pagine Gialle S.p.a.
MOODY'S UPGRADES SEAT TO Ba3; OUTLOOK STABLE
Approximately Euro 1.3 billion of rated debt affected
London, 27 June 2006 -- Moody's Investors Service today upgraded all ratings of Seat Pagine Gialle SpA
("Seat" or "the company") by one notch prompted by the company's ongoing operational improvements and
debt reduction. The outlook for all ratings is stable.
Ratings affected are as follows:
Seat Pagine Gialle SpA
Corporate family rating upgraded to Ba3 from B1
Lighthouse International Company SA
Euro 1.3 billion 8% senior secured notes due 2014 upgraded from B3 to B2
The upgrade of the corporate family rating to Ba3 reflects operational improvements and material debt
repayments made by Seat since its initial rating in 2004 when the company was the subject of a leveraged
buyout from Telecom Italia. The company, which is the dominant directories publisher in Italy, also has a
number two position in the UK directories market through Thomson Directories and is the number two player,
behind Deutsche Telekom, in the directory assistance market in Germany.
Since the LBO, the company has revamped its sales infrastructure in Italy and made material improvements
in its working capital management such that cash flow from operations has improved from Euro 258 million in
FY04 to Euro 365 million in FY05. This improved cash flow has enabled the company to repay approximately
Euro 430 million of debt since the LBO. As of FY05, leverage has reduced to 5.7x compared to 6.4x in FY04
and 6.9x pro forma leverage in FY03. The upgrade reflects Moody's expectation that Seat will continue to
pursue a strategy of de-leveraging.
Seat has recently announced that it has refinanced Euro 256 million of its senior debt with a receivables
securitisation programme in Italy; this securitisation debt will be on balance sheet and therefore does not
result in any change in the company's leverage but does reflect the improvements made to its working capital
management and also reduces its cost of capital.
The company's rating is supported by its strong market position, particularly in Italy and its solid profitability -EBITDA margins in FY05 were 45.8% - but remain constrained by a financial profile which is still highly
leveraged and which anticipates cash outflows in 2006 for dividends as well as increased IT and advertising
expenditure. Leverage falling towards 4.0x times and Debt/FCF of less than 10x would create upward
pressure on the ratings. Conversely, a reversal in the company's de-leveraging strategy, either as a result of
a debt-funded acquisition, material increase in dividend payments or a deterioration in operating performance
would place the ratings under downward pressure.
The stable outlook reflects Seat's very strong market position in Italy and solid number two positions in
Germany and the UK; the stable nature of the print directories business with growth opportunities coming
from internet and directory assistance products and a profile that does not anticipate major event risk in the
form of M&A activity.
Headquartered in Turin, Seat is the number one directory publisher in Italy with operations in the UK,
Germany and France. For the year ended December 31, 2005, Seat generated consolidated revenues of
Euro 1,425 million.
London
David G. Staples
Managing Director
Corporate Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
London
Amanda Neff
VP - Senior Credit Officer
Corporate Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
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