TEXT-S&P revises Mood Media outlook to stable; affirms 'B' rating

(The following statement was released by the rating agency)

Oct 09 - Overview

-- Canada-based in-store media company Mood Media Corp. is proposing toissue $350 million of senior unsecured notes.

-- We understand that Mood Media will use the proceeds to prepay some ofits outstanding debt as well as to fund acquisitions.

-- We are revising the outlook on Mood Media to stable from positive andaffirming our 'B' long-term corporate credit rating on the company.

-- The stable outlook reflects our view that Mood Media will maintain itssolid market position and successfully integrate its 2012 acquisitions whilemaintaining meaningful positive free cash flow generation.

Rating Action

On Oct. 9, 2012, Standard & Poor's Ratings Services revised the outlook onCanada-based in-store media company Mood Media Corp. to stable from positive.At the same time, we affirmed our 'B' long-term corporate credit rating onMood Media.

In addition, we assigned our 'B-' long-term debt rating to Mood Media'sproposed $350 million senior unsecured notes, which are likely to have a tenorof eight years. We have assigned a recovery rating of '5' to the proposednotes, indicating our expectation of "modest" (10%-30%) recovery fornoteholders in the event of a payment default.