S&P cuts Entercom view to negative

Standard & Poor's said it revised its outlook on Entercom Communications Corp. to negative from stable due to the company's rising pro forma debt leverage, partially attributable to continued EBITDA declines over the course of 2007; narrow pro forma margin of covenant compliance; and weakened discretionary cash flow.

The agency noted Entercom's financial risk from debt-financed radio station acquisitions, the potential for additional acquisitions that could weigh on credit measures, narrow margin of covenant compliance, a competitive operating environment and the potential for advertising volatility.

The company's good competitive positions in large radio markets, radio broadcasting's decent margin and discretionary cash flow potential and largely resilient station asset values only partially offset these factors, in S&P's view.

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