S&P upgrades Entravision

Standard & Poor's said it raised the corporate credit rating on Entravision Communications Corp. to B+ from B, along with its senior secured notes to B+ from B.

The recovery rating on this debt remains 3, indicating 50% to 70% expected default recovery.

The outlook is stable.

The upgrades reflect an expectation that the company will maintain its lease-adjusted debt to less than 6x through elections cycles while maintaining at least a 20% EBITDA margin of compliance under its financial covenants, S&P said.

The agency said it expects leverage will remain below the target for the rating partially because of increasing re-transmission revenues despite exposure to structural trends in radio, the agency said.

Entravision's financial risk is highly leveraged based on its high debt-to-EBITDA ratio, although S&P said it believes the company will maintain adequate liquidity over the intermediate term, supplemented by healthy cash balances.

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