Moody's cuts Entravision

Moody's Investors Service said it downgraded Entravision Communications Corp.'s corporate family rating to B1 from Ba3, probability of default rating to B2 from B1, and the senior secured credit facility rating to B1 from Ba3.

The downgrades reflect Moody's expectation that the advertising slowdown will continue to pressure Entravision's EBITDA over the next 12 months despite the company's cost reduction efforts and incremental retransmission revenue, the agency said.

Moody's noted that it anticipates Entravision will maintain debt-to-EBITDA leverage (about 6.5x latest 12 months ended June 30 incorporating Moody's standard adjustment) at an elevated level and limited cushion under its financial maintenance covenants.

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