Vericast Corp., a print-based customer service and solutions company headquartered in Texas, announced its plan to exchange a portion of its first-lien term loan into new second-lien notes. The company also proposed to defer the next four quarters of its mandatory amortization payments on its amended first-lien term loan. We lowered our issuer credit rating to 'CC' from 'CCC+'. At the same time, we lowered the issue-level rating on the first-lien term loans to 'CC'. The negative outlook reflects the expectation that we will lower our issuer credit rating on Vericast to 'SD' upon the completion of these exchanges because we consider them to be distressed. At that time, we will also lower our issue-level ratings on the debt being
