M2 EQUITY BITES-December9, 2011--DBRS upholds Yellow Media's BB/Pfd-4 ratings with "negative" trend (C)2011 M2 COMMUNICATIONS http://www.m2.com 9 December 2011 - DBRS on Thursday affirmed Yellow Media's (TSE:YLO) issuer rating at BB and the rating on the Canadian media group's preferred shares at Pfd-4 (low), with the trend remaining "negative". The group's issuer rating reflects growing worries about its transition to digital from print and the company's limited financial flexibility and liquidity in the face of tighter credit facility covenants and a stream of debt maturities from 2013 onwards. The negative trend factors in the uncertainty surrounding Yellow Media's ability to show its digital strategy is working and to generate sufficient liquidity to continue to back its digital transition and developing capital structure over the medium term. The rating agency also kept the rating on Yellow Media's medium-term notes at BB with an RR4 recovery rating and its exchangeable subordinated debentures at B (high) with an RR6 recovery rating. ((Comments on this story may be sent to [email protected]))