S&P lowers Hanley Wood’s outlook to negative

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New York—Standard & Poor’s rating service has revised its outlook on construction publisher Hanley Wood to negative from stable.

At the same time, S&P affirmed all ratings on the company, including the “B” corporate credit rating.

“The outlook revision reflects Hanley’s weaker-than-expected 2007 operating results, and our concern that the soft U.S. housing market and general economic conditions will continue to pressure performance in 2008,” said S&P credit analyst Michael Altberg in a news release.

S&P said the outlook change reflects high risk resulting from the August 2005 leveraged acquisition of Hanley Wood by JPMorgan Partners for $650 million, EBITDA (earnings before interest, taxes, depreciation and amortization) declines during the past year, cyclical operating performance and limited business diversity. The company’s “good, niche competitive” positions in the residential publishing and exhibitions industries, S&P said, only partially offset the negative factors.

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