S&P: Antenna TV outlook negative

Standard & Poor's said it revised the outlook on Antenna TV SA to negative from stable, due to the company's continuing weak operating performance and limited liquidity.

The B long-term corporate credit and senior unsecured debt ratings were affirmed.

S&P said the outlook change follows Antenna's weaker-than-expected performance and cash balances in the first quarter, as well as uncertainties about the company's ability to meaningfully improve revenue and EBITDA performance in the remainder of 2008.

Ratings reflect the company's limited free cash flow generation, very aggressive financial profile, reliance on cyclical advertising revenue and historically high programming costs, the agency said.

Partially offsetting these factors are the group's fast-growing and highly profitable television operations in Bulgaria, Antenna's improving audience share and regulatory barriers to entry, S&P noted.

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