S&P lowers ION Media

Standard & Poor's said it lowered its corporate credit and issue-level ratings on ION Media Networks Inc.

The corporate credit rating was lowered to CC from CCC, reflecting the company's recent announcement that it is in discussions with its secured lenders with regard to a comprehensive recapitalization of its balance sheet that could include a significant debt-for-equity exchange, the agency said.

The outlook is negative.

"The downgrade and negative outlook reflect its concern about ION Media's very weak liquidity position and the heightened probability that secured creditors could lose principal because of declining revenues and EBITDA in an advertising recession," said S&P credit analyst Deborah Kinzer.

"In its view, the company's cash balances, which are its only source of liquidity, could be depleted very soon."

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