Moody's rates Entravision loans B1

Moody's Investors Service assigned a B1 rating to Entravision Communications Corp.'s proposed senior secured bank credit facilities totaling $400 million, lowered the company's senior unsecured issuer rating to B2 from B1 and affirmed the company's B1 senior implied rating and the B3 rating for the 8.125% senior subordinated notes due 2009.

The outlook is stable.

The new facilities will be used to refinance existing unrated bank credit facilities.

Moody's said the rating assignment and affirmations reflect the company's high financial leverage and thin cash flow coverage of interest and dividends, balanced by the substantial underlying asset value of the company's station portfolio and the growth prospects of Spanish-language media more broadly.

The ratings also reflect the financial risk posed by Entravision's debt-financed acquisition strategy. Moody's said it expects Entravision to pursue further duopoly opportunities in its television markets as the popularity of Telefutura grows. It is also likely that the company will pursue additional radio acquisitions to achieve greater scale in existing radio clusters.

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