Yell, the directories publisher, has been showing signs of lifel after its tricky time last year, and has now received an upgrade from ratings agency Standard & Poor's.
The company has cut its debt by £1.2bn to £3bn, including a £559m cash call on shareholders, and it recently reported a better than expected third quarter performance and expressed cautious optimism about a return of business confidence.
So S&P has revised its outlook on the company from negative to stable, and affirmed its B credit rating. S&P credit analyst Carlo Castelli said:
The outlook revision reflects our view that Yell's liquidity has improved significantly and is now adequate following a debt refinancing, covenant reset and sizeable rights issue late in 2009. [It] also incorporates our view that the double-digit declines in top-line revenues and earnings projected for financial 2010 could soften in financial 2011.
The news has sent Yell shares 1.3p higher to 45.77p.
