S&P: Entravision loans B+

Standard & Poor's said it affirmed the B+ corporate credit rating on Entravision Communications Corp.

The agency also said it assigned a rating of B+ to the company's term loan B due 2020 and revolving credit facility due 2018 with a recovery rating of 3, indicating 50% to 70% expected default recovery.

The outlook is stable.

The proposed transaction increases lease-adjusted debt leverage to roughly 5.5x from 5.1x as of March 31, 2013 due to higher debt balances, the agency said.

However, S&P said it believes the transaction also improves cash flow generation and interest coverage, giving the company slightly more long-term financial flexibility.

The agency said it assesses Entravision's financial risk profile as highly leveraged based on its high debt leverage.

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