Moody’s cuts Urban One notes

Moody’s Investors Service said it downgraded the ratings on Urban One Inc.’s $350 million senior secured term loan and $350 million of senior secured notes to B3 from B2.

“The downgrade of the senior secured note and term loan ratings reflect the reduced amount of subordinated debt outstanding in the capital structure,” Moody’s said in a press release.

The agency also changed the outlook to negative from stable.

The negative outlook reflects the pandemic’s effect on the economy, which Moody’s said it expects will substantially reduce radio advertising revenue in the near term and lead to significantly higher leverage levels and lower cash from operations.

“The outlook also considers the need to refinance approaching debt maturities in the near term,” Moody’s said.

Moody’s affirmed the company’s B3 and B3-PD probability of default ratings.

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