S&P puts Entravision on watch

Standard & Poor's said it placed Entravision Communications Corp.'s B+ corporate credit rating on CreditWatch with negative implications.

"The CreditWatch listing reflects our increased concern regarding the company's ability to maintain financial covenant compliance based on our economic outlook and view of weak ad demand in television and radio, which we expect will continue through most or all of 2009," S&P analyst Michael Altberg said in a statement.

Per lenders' computations, senior secured debt-to-EBITDA ratio was 5.46x as of Sept. 30, against a 5.75x covenant that stepped down to 5.25x in the fourth quarter and tightens further to 5x at the end of 2009, the agency said.

Lease-adjusted debt-to-EBITDA ratio was 6.1x for the 12 months ended Sept. 30, up from 5.6x at the 2007 year-end.

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