Cumulus Media 'B' Rating Outlook Revised To Negative
- ID: 1783539
- December 2008
- Standard & Poors
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CHICAGO (Standard & Poor's) Dec. 19, 2008--Standard & Poor's Ratings Services today revised its rating outlook on radio broadcaster Cumulus Media Inc. to negative from stable. We also affirmed all ratings on the company, including the 'B' corporate credit rating. "The outlook action is based on our expectation that Cumulus' liquidity will tighten in 2009, when aggressive covenant step-downs will cause the company's cushion of compliance with covenants to narrow significantly," explained Standard & Poor's credit analyst Jeanne Mathewson. Debt to EBITDA was 7.4x as of Sept. 30, 2008, versus the leverage ratio covenant of 7.75x, which stepped down to 7.50x on Oct. 1, 2008, and will step down again to 7.00x on Jan. 1, 2009. Maintenance of the rating...
Companies mentioned in this report are: Cumulus Media Inc.
Action: Outlook: Negative