CMP Susquehanna Corp.
- ID: 1783382
- May 2006
- Standard & Poors
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Research Type: Full Analysis
Eight radio station clusters in the top 50 designated market areas in the U.S.; Broadcasting's good margin potential and cash flow generating capabilities; and High radio station asset values. Very high leverage; Management's inexperience operating in the larger markets, where CMP Susquehanna Corp.'s assets are located; Weakness in radio ad demand; and Increased competition from traditional and nontraditional media, limiting cash flow generation and intermediate-term debt reduction. The rating on CMP Susquehanna Corp. reflects its very high leverage, unfavorable secular trends in radio advertising, advertising cyclicality, and the potential for additional acquisitions. These factors are partially offset by CMP's portfolio of large-market radio stations, radio broadcasting's good margin and discretionary cash flow potential, and healthy station asset values. CMP, along...
Companies mentioned in this report are: CMP Susquehanna Radio Holdings Corp.,Cumulus Media Inc.