S&P ups Radio One debt to BB-, B

Standard & Poor's said it raised its ratings on Radio One Inc., including its long-term corporate credit rating to BB- from B+, acknowledging the company's financial profile improvement over the past three years. The ratings are removed from CreditWatch positive, where they were placed on Feb. 3.

At the same time, S&P assigned a BB rating to the company's proposed $750 million credit facilities with a recovery rating of 1.

S&P also upped Radio One's senior secured debt to BB- from B+ and subordinated debt to B from B-.

Borrowings are expected to be used to refinance the company's existing credit facilities. The outlook is stable.

S&P said the upgrade reflects a 15% increase in EBITDA in 2004 from 2002 and an 8% decline in total debt, including prior years' debt-like preferred stock.

Furthermore, S&P said it expects that Radio One will prudently allocate free cash flow and approach acquisitions in a disciplined manner while pursuing its growth objectives.

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