Moody's lowers Citadel Broadcasting

Moody's Investors Service said it downgraded Citadel Broadcasting Corp.'s corporate family and probability-of-default ratings to B1 from Ba3 and its senior secured credit facility to B1 from Ba3.

The agency lowered the $200 million senior secured revolving credit facility, $600 million senior secured tranche A term loan and $1.535 billion senior secured tranche B term loan to B1 from Ba3 (LGD3, 46% from 43%).

The speculative grade liquidity rating was lowered to SGL-3 from SGL-1. Ratings remain under review for further downgrade.

Moody's said the downgrade was prompted by ongoing weakness in the company's operating performance as revenue and EBITDA are pressured by internal operating challenges and an increasingly difficult economic and radio advertising environment.

As of June 30, the debt-to-EBITDA leverage was 7.95 times.

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