S&P lowers E.W. Scripps, rates loan BB+

S&P said it lowered its corporate credit rating on the E.W. Scripps Co. to BB- from BB. The outlook is stable.

S&P also assigned its BB+ issue-level rating and 1 recovery rating to the company's proposed $250 million senior secured term loan B. The 1 recovery rating indicates an expectation for very high (90%-100%; rounded estimate: 95%) recovery of principal in the event of a payment default.

S&P lowered its issue-level rating on the company's revolving credit facility to BB+ from BBB-. The 1 recovery rating is unchanged, indicating an expectation for very high (90%-100%; rounded estimate: 95%) recovery of principal in the event of a payment default.

Additionally, S&P lowered its issue-level rating on the company's senior unsecured notes to BB- from BB. The 3 recovery rating is unchanged, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 50%) of principal in the event of a payment default.

“The downgrade reflects a material increase in E.W. Scripps' leverage pro forma for its largely debt-financed acquisition of Bounce Media LLC and Katz Broadcasting Holdings LLC, which we expect to close in the fourth quarter of 2017,” S&P said in a news release.

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