Moody's cuts Entercom

Moody's Investors Service said it downgraded the corporate family and probability-of-default ratings for Entercom Radio LLC to Ba3 from Ba2 and downgraded its 7 5/8% senior subordinated notes to B2 from B1 (LGD 93%).

According to the agency, the downgrade reflects leverage rising to the mid 5 times in 2007and weak industry fundamentals.

The Ba3 corporate family rating also reflects some concentration of revenue within its top five markets, which remain highly competitive, and the equity orientation as well as the maturity and cyclicality of the radio industry, the agency said.

Strong EBITDA margins and the capacity to generate free cash flow, along with geographic and format diversity, support the ratings, Moody's said.

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