S&P: Entercom unaffected

Standard & Poor's said its corporate credit rating and outlook on Entercom Communications Corp. (BB-/stable) are not affected by the company's proposed asset swap with Bonneville International. The plan calls for Entercom to receive three FM stations in San Francisco and about $1 million in cash in exchange for four stations in Cincinnati, Ohio, and three out its seven stations in Seattle, Wash. The agency said that Entercom's pro forma total debt-to-EBITDA ratio was around 5.1x as of Sept. 30, and will be largely unchanged after the proposed transaction due to the cash flow similarities between the swapped assets.

From a business profile perspective, S&P said it views the asset swap as modestly positive since it strengthens Entercom's presence on the West Coast, which is the company's most profitable region.

Still, Entercom might have to make investments associated with reformatting one of the San Francisco stations, the agency said, which could depress revenues and cash flow in the short term.

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