S&P: Radio One on watch

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

Ratings were originally placed on CreditWatch with negative implications on March 22, following the company's announcement that it would delay the filing of its SEC Form 10-K until the conclusion of an internal review of historical stock option granting practices for 1999 to 2005, the agency said.

Although the company has filed both its Form 10-K for fiscal year 2006 and its Form 10-Q for the first fiscal quarter of 2007, the continued CreditWatch review reflects Radio One's violation of its interest coverage covenant for the 12 months ended March 31, S&P added.

EBITDA decreased 8.4% off a 1% increase in revenue for the first quarter ended March 31, reflecting continued softness in the company's Los Angeles market, combined with increased promotional spending, the agency said.

© 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.