S&P: Radio One on watch

Standard & Poor's said it placed its ratings, including its B+ corporate credit rating, on Radio One Inc. on CreditWatch with negative implications.

The agency said that the CreditWatch action follows the company's announcement that it will delay the filing of its Form 10-K until the conclusion of an internal review of historical stock option granting practices for years 1999 through 2005.

Radio One had previously indicated that it would be able to file its annual report within the 15-day extension period ended March 16, 2006, but has concluded that it will need additional time to complete the review, S&P added.

The agency said that the company indicated that operating results will be materially affected for years 1999 through 2003, but hasn't determined the amount of the additional noncash stock compensation expense that it will be required to recognize, the periods in which such expenses would be recognized, or the related tax impact of such corrections.

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