S&P: Radio One on developing watch

Standard & Poor's said it revised the Creditwatch implications on its CCC+ corporate credit rating for Radio One Inc. to developing from positive.

"The revised Creditwatch implications reflect delays and uncertainty in the ultimate outcome of the company's proposal to refinance its capital structure and acquire a controlling stake in TV One LLC, an African-American targeted cable TV network," explained S&P credit analyst Michael Altberg.

"If the company succeeds in refinancing its capital structure, key rating considerations for an upgrade will include pro forma leverage, EBITDA coverage of interest, discretionary cash flow generation, and the ownership structure of TV One. We could lower the rating if the company is unable to resolve its financing needs prior to the end of its forbearance agreement, which expires Aug. 13, 2010."

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