S&P cuts Bonten loan

Standard & Poor's said it revised its ratings on the $61 million bank loan facilities of Bonten Media Group Inc.

"Today's rating action reflects a change in the EBITDA multiple that we applied in our simulated default scenario to 6x from 7x," explained S&P credit analyst Debbie Kinzer.

"This change brings Bonten's EBITDA multiple in line with those of its peers among small TV station groups."

The agency said it lowered the rating on the bank loan facilities to B+, one notch above the B corporate credit rating on Bonten, from BB-, while it changed the recovery rating to 2.

The facilities consist of a $15 million revolving credit facility maturing in 2013, a $21.75 million term loan B maturing in 2014 and a $24.25 million delayed draw term loan maturing in 2014, S&P said.

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