Moody's may cut Entercom Radio

Moody's Investors Service said it placed the ratings for Entercom Radio, LLC on review for possible downgrade following the company's announcement to acquire 15 radio stations in four markets from CBS Corp. for $262 million in cash, a Boston station from Radio One for $30 million in cash and the divestiture of two Rochester stations.

The review will focus on the impact of the incremental debt to finance the transactions and the resulting impact on credit metrics, particularly leverage given the company's recent debt financed dividend and share repurchase activity.

Ratings under review for possible downgrade include the Ba2 rating on $150 million 7.625% senior subordinated notes and the Ba1 corporate family rating.

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