S&P changes Entercom to negative

S&P said it affirmed its ratings, including the B+ issuer credit rating, on Entercom Communications Corp.

The agency also revised the outlook to negative.

The issue level rating on Entercom's senior secured debt remains BB- and the recovery rating remains 2, indicating an expectation of substantial (70%-90%; rounded estimate: 75%) recovery of principal in the event of default.

The issue-level rating on the company's subordinated debt remains B- and the recovery rating remains 6, indicating an expectation of negligible (0%-10%; rounded estimate: 0%) recovery in the event of a payment default.

“Revenue weakness, particularly at the acquired CBS Radio Inc. stations, has caused leverage to increase and the company's margin of compliance with its leverage covenant to decline,” S&P said in a news release.

“As of June 30, 2018, we estimate that the EBITDA margin of compliance was thin at roughly 5%. We expect the margin of compliance to improve once the company closes on contracted asset sales; however, some of the sales may not close until the fourth quarter of 2018.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.