S&P upgrades Radio One

Standard & Poor's said it raised the long-term corporate credit rating on Radio One Inc. to CCC+ from SD and its 6 3/8% senior subordinated notes due 2013 to CCC- from D.

The agency affirmed the CCC- rating on the company's 8 7/8% senior subordinated notes due 2011 and removed the rating from CreditWatch. The recovery rating was left unchanged at 6 for both issues.

S&P assigned B- ratings to the company's amended and extended credit facilities. The senior secured facilities now consist of a $27.6 million term loan A, a $323 million term loan B and a $38.8 million revolving credit facility split into three different tranches. The recovery rating is 2, indicating expectation of 70% to 90% recovery.

We also assigned a CCC- rating to the company's new 12.5%/15% senior subordinated notes due 2016 with a recovery rating of 6, indicating expectation of 0% to 10% recovery.

The outlook is positive.

S&P said the action reflects Radio One's amendment of its senior secured credit facilities and an exchange offer for its subordinated debt.

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