New York, December 18, 2012 -- Moody's Investors Service (Moody's) downgraded Reader's Digest Association Inc.'s ("RDA") Corporate Family Rating (CFR) and Senior Secured Notes to Caa3 from Caa1. The Probability of Default Rating was also changed to Caa3 from Caa1. The outlook remains negative. RDA's Senior Secured Term Loan and Unsecured Term Loan are not rated. The downgrade reflects continuing weak performance driven by economic conditions as well as negative secular trends, the resulting increase in leverage that may lead to an unsustainable capital structure, and a weakened liquidity position exacerbated by the need for an amendment of its term loan facility.

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