'L' for lower as S&P lowers UK directories publisher rating

Standard & Poor's downgraded struggling UK directories publisher Yell from B to B- on Friday, citing lower earnings and higher leverage.

The company faces a difficult operating environment and an excessively leveraged capital structure, say S&P.

S&P projects that Yell's operating performance will likely remain under pressure in the year ahead due to the continuing economic difficulties in its main countries of operation, and the ongoing decline in the profitable traditional print business.

The tough operating environment for traditional directories publishers is reflected in the Creditflux default index, with Truvo, Thompson Publishing, and Local Insight all filing for chapter 11 bankruptcy within the past 12 months.