S&P rates Tribune loan BB+

Standard & Poor's said it assigned a BB- corporate credit rating to Tribune Co., along with a BB+ rating to its $1.1 billion first-lien term loan due 2019.

The agency also assigned a recovery rating of 1, indicating 90% to 100% expected default recovery.

The outlook is stable.

Tribune's business risk profile is considered fair, mainly reflecting a view that television broadcasting has become a much larger portion of the company's EBITDA and offers a significant element of stability to profitability and cash flow, notwithstanding the unfavorable fundamentals of the newspaper business, S&P said.

The business risk profile also is supported by a stream of cash distributions from the company's equity investments, the agency said.

Despite the company's relatively moderate leverage, S&P said it considers Tribune's financial policy aggressive based on an expectation that the company's equity owners will be eager to monetize their investments.

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