S&P cuts Radio One

Standard & Poor's said it lowered its corporate credit rating on Radio One Inc. to B from B+.

The agency said that the downgrade reflects its concerns over high debt leverage, uncertainty surrounding the resolution of continued financial covenant violations and weakened profitability in a number of key markets.

The outlook is stable.

At the same time, S&P said it lowered its rating on the company's $800 million senior subordinated notes to CCC+ from B- while it also affirmed its BB- bank loan rating on Radio One's senior secured credit facility, two notches above the corporate credit rating and recovery rating of 1.

The agency added that it removed all ratings from CreditWatch, noting that ratings were originally placed on CreditWatch with negative implications on March 22, after the company's announced 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 1999-2005.

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