S&P: Regent outlook negative

Standard & Poor's said it revised its outlook on Regent Communications Inc. to negative from developing and affirmed the company's CCC corporate credit rating and the debt ratings of subsidiary Regent Broadcasting LLC.

The agency said Regent is unable to borrow on its $75 million revolving credit facility as a result of ongoing covenant violations, and the outlook revision reflects S&P's concern regarding Regent's very limited liquidity and its potential need to access the revolver in the first half of 2010.

The CCC rating reflects uncertainty surrounding Regent's ability to get a credit amendment at terms that would provide ongoing covenant relief, high debt leverage due to past acquisitions, some revenue and profit concentration in two markets and increased competition from new media formats, S&P said.

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