Moody's cuts Freedom

Moody's Investors Service said it downgraded Freedom Communications, Inc.'s corporate family rating to Ba3 from Ba2 as a result of weakened operating performance.

Moody's said that lowered ratings include the $300 million senior secured revolving credit facility due 2011 to Ba3, LGD3, 31% from Ba2, LGD2, 29%; $350 million senior secured term loan A due 2011 to Ba3, LGD3, 31% from Ba2, LGD2, 29%; $300 million senior secured term loan A-1 due 2012 to Ba3, LGD3, 31% from Ba2, LGD2, 29% and corporate family rating to Ba3 from Ba2 as well as the probability of default rating to B1 from Ba3.

The outlook is stable.

The downgrade of the CFR to Ba3 results from a weakening of Freedom's top line and EBITDA , which has led to a deterioration of the company's leverage and coverage metrics beyond levels previously expected by Moody's.

The Ba3 CFR reflects Freedom's high financial leverage, the vulnerability of its business to print advertising spending, the competition which it faces in a number of markets and the secular pressure faced by the newspaper publishing sector as a whole, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.