S&P keeps Entercom Communications on watch

Standard & Poor's said its BB corporate credit rating and B+ subordinated debt rating on Entercom Communications Corp. remain on CreditWatch, where they were placed with negative implications on June 2, reflecting concerns of increasing leverage.

On Aug. 21, the agency said that Entercom announced a definitive agreement to acquire radio stations in four markets from CBS Corp. for a total of $262 million.

In resolving the CreditWatch listing, S&P said it will review the financing structure and assess the impact these acquisitions will have on the company's business strategy and financial profile, noting that incremental leverage resulting from these acquisitions could limit Entercom's ability to restore its debt to EBITDA ratio to a range appropriate for a BB rating.

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