S&P lowers Regent Communications

Standard & Poor's said it lowered the long-term corporate credit rating on Regent Communications Inc. to B- from B and on its $240 million senior secured credit facilities to B- from B+. The recovery rating was revised to 3.

The outlook is negative.

According to S&P, the downgrade reflects the company's narrow margin of covenant compliance and concern that it may have difficulty meeting its year-end covenant, especially as economic conditions worsen.

As of June 30, total debt-to-EBITDA ratio was 6.5x versus a 7x financial covenant, leaving roughly a 7% cushion against EBITDA declines.

The agency said that although Regent continues to demonstrate good cost discipline, results in the second half could be further tempered by the weak economy, especially if conditions worsen in their local markets.

© 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.