Moody’s lowers Clear Channel, notes; rates notes B2

Moody's Investors Service said it downgraded Clear Channel Worldwide Holdings, Inc.'s (CCW) corporate family rating to B3 from B2.

The series A and B senior notes due 2022 were downgraded to B2 from B1 and the series A and B senior subordinated notes due 2020 were downgraded to Caa1 from B3.

The proposed $225 million of senior notes due 2020 by subsidiary Clear Channel International BV was assigned a B2 rating.

The outlook is stable.

Moody’s said the downgrade reflects the issuance of $225 million of senior notes at subsidiary Clear Channel International that increases the pro-forma leverage level to 7.6 times as of Q3 2015 (excluding Moody's standard lease adjustments) from 7.3 times which is above the threshold for the B2 corporate family rating level.

Weak operating performance in international markets due to the impact of the strong dollar combined with a debt structure denominated in dollars has been a headwind for the company over the last year, the agency said. Foreign exchange risk is expected to remain as the debt balances are anticipated to remain unhedged.

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