S&P slices Beasley Broadcast

S&P said it downgraded Beasley Broadcast Group Inc.’s rating to CCC+ from B.

“We expect declines in advertising revenue will cause Beasley's leverage to spike in 2020 and remain elevated in 2021 and beyond. Beasley Broadcast Group Inc.'s S&P Global Ratings-adjusted leverage was about 5.8x as of Dec. 31, 2019, after acquiring radio station WDMK-FM and the Houston Outlaws e-sports team in 2019, which were partially funded with debt,” said S&P in a press release.

“We expect Beasley's leverage will spike above 10x in 2020 due to a material decline in advertising revenue, which we believe it cannot fully offset with cost cuts,” said the agency.

The outlook is negative.

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