Summary: Cumulus Media Inc.
- ID: 1783478
- December 2007
- Standard & Poors
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This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
The rating on radio broadcaster Cumulus Media Inc. reflects high financial risk from its proposed LBO; the potential for debt-financed acquisitions that could limit financial profile improvement; EBITDA margins that compare unfavorably with peers; and a competitive and stagnant radio advertising environment. The company's competitive positions in small and midsize markets, radio broadcasting's good margin and discretionary cash flow potential, and largely resilient station asset values only partially offset these factors. Cumulus has demonstrated success in improving historically weaker profitability in its smaller markets by clustering stations, gaining market share, and achieving operating efficiencies. The smaller markets in which Cumulus operates are less exposed to volatile trends in national advertising than larger markets are, but such markets do not benefit...
Companies mentioned in this report are: Cumulus Media Inc.
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