Moody’s: iHeartCommunications view to negative

Moody's Investors Service said it changed iHeartCommunications, Inc.'s outlook to negative from stable.

All the existing debt ratings, including the Caa2 corporate family rating and Caa3-PD probability of default rating, were affirmed at current levels.

The speculative grade liquidity rating was downgraded to SGL-4 from SGL-3.

Moody’s said the outlook change reflects the elevated possibility that the company will restructure its debt over the next year.

iHeart recently attempted to obtain consent solicitations that would make it easier for the company to restructure its debt, from five different classes of priority guarantee notes (PGN), which was not successful, and from its 2021 senior note, which was approved by note holders.

Moody's said it would likely consider an exchange of the company's existing debt for another security as a distressed exchange and categorize it as a limited default.

The outlook also reflects the negative impact that the current strength of the U.S. dollar would have on its financial performance in the near-term and the company's largely U.S. dollar denominated debt structure, the agency explained.

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