S&P rates E.W. Scripps notes BB, revolver BBB-

S&P said it assigned its BB issue-level rating and 3 recovery rating to the E.W. Scripps Co.'s proposed $400 million senior unsecured notes due 2025. The 3 recovery rating indicates an expectation for a substantial recovery (50%-70%; rounded estimate: 65%) of principal in the event of a payment default.

S&P also assigned BBB- issue-level and 1 recovery ratings to the company's proposed $125 million senior secured revolving credit facility due 2022. The 1 recovery rating indicates an expectation for a very high recovery (90%-100%; rounded estimate: 95%) of principal in the event of a payment default.

The proposed credit facility would replace the company's outstanding $100 million revolver due 2018.

The BB corporate credit rating and stable outlook on the company are not affected by the proposed transaction, the agency said.

S&P said this transaction is leverage neutral as the company is using the proceeds to repay its existing first-lien term loan.

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