S&P rates Entercom, credit

Standard & Poor's said it assigned its B+ corporate credit rating to Entercom Communications Corp. and its subsidiary, Entercom Radio LLC. The outlook is stable.

At the same time, the agency said it assigned Entercom Radio's $425 million senior secured credit facilities an issue-level rating of BB- with a recovery rating of 2, indicating an expectation of substantial recovery for lenders in the event of a payment default.

The agency said it also assigned Entercom Radio's $220 million senior unsecured notes an issue-level rating of B- with a recovery rating of 6, indicating an expectation of negligible recovery for lenders in the event of a payment default.

S&P said its rating on Entercom reflects the company's "highly leveraged" financial risk profile, characterized by lease-adjusted leverage of 6.4x. Entercom's business risk profile is "fair," because of the company's healthy EBITDA margin and discretionary cash flow generation, the agency said.

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