Moody's downgrades Entercom

Moody's Investors Service said it downgraded Entercom Radio, LLC's corporate family and probability-of-default ratings to Ba2 from Ba1 and its 7 5/8% senior subordinated notes to B1 (LGD6, 92%) from Ba2 (LGD6, 92%).

The outlook is stable, and this concludes the review for possible downgrade begun on Aug. 22, 2006 following the company's announcement that it planned to acquire 15 radio stations in four markets from CBS Corp. for $262 million in cash, acquire a Boston station from Radio One for $30 million in cash and divest two Rochester stations.

The agency said the Ba2 corporate family rating reflects the company's increased leverage, its propensity for returning capital to shareholders, its concentration of revenues in a few markets, the highly competitive nature of the larger markets, the inherent cyclicality of the advertising market and Moody's belief that radio is a mature industry with modest growth prospects.

Entercom's rating is supported by its geographic and format diversity, its strong EBITDA margins and its local market focus, Moody's said.

© 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.