Moody's: Clear Channel unchanged

Moody's Investors Service said that Clear Channel Communications, Inc.'s (Caa2 corporate family rating) announced stock purchase program may have negative credit implications if executed.

The company announced that its board of directors has approved a stock purchase program under which it or its subsidiaries may purchase up to an aggregate of $100 million of the class A common stock of its indirect subsidiary, Clear Channel Outdoor Holdings, Inc. (not rated), the agency said.

In Moody's view, the repurchase program and its relatively modest size are not by themselves unusual. However, the weakness of CCC given its huge debt and leverage burden make any use of cash other than for debt reduction a concern from a credit risk perspective, despite the benefits from the recent advertising rebound, the agency said.

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