Moody's rates Freedom loan Ba2

Moody's Investors Service said it assigned a Ba2 rating to Freedom Communications Inc.'s new $300 million senior secured term loan A-1 due 2012 and affirmed the ratings of existing credit facilities, including the Ba2 rating on the $300 million senior secured revolving credit facility due 2011 and the Ba2 rating on the $350 million senior secured term loan A due 2011.

The outlook is stable.

Freedom plans to use the proceeds of the new term loan to partially refinance its existing $348 million senior secured term loan B, the agency said. In addition, the company is seeking modifications to its existing loan agreement, including a relaxation of some financial covenants and common stock repurchase provisions.

Ratings are supported by the value of the company's attractive media assets, the stability and geographic diversification of its cash flows, its adequate liquidity and its strong management team. Ratings also reflect Freedom's high financial leverage, the vulnerability of its metro business to competition and its control by a relatively small group of insiders, the agency said.

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