S&P: Entercom Communications on watch

Standard & Poor's said it placed its ratings on Entercom Communications Corp., including the BB corporate credit rating, on CreditWatch with negative implications.

The CreditWatch placement recognizes that Entercom's debt to EBITDA ratio of 4.3 times at March 31 is stretched for the current rating level, S&P said, adding that this ratio has increased from 3.7 times at Dec. 31 and 3.2 times at Dec. 31, 2004 because of higher debt levels as a result of share repurchases, acquisitions and EBITDA declines.

S&P said it is concerned about Entercom's prospects for cash flow growth in the intermediate term given the broader secular challenges facing the radio advertising industry, including increasing competition for audiences because of the iPod and satellite radio and for advertisers because of alternative media such as the internet.

© 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.