Summary: Cumulus Media Inc.

Standard & Poors, July 2010

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

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.

Abstract
The 'B-' rating reflects our view that Atlanta-based Cumulus Media Inc. could have difficulty maintaining covenant compliance when its leverage covenant is reinstated in March 2011. Leverage, as calculated per the credit agreement, was 8.0x as of March 31, 2010--well above the March 2011 covenant of 6.5x. However, Standard & Poor's Ratings Services believes the company could afford the costs associated with an amendment or waiver, should it need one. Additional key rating considerations include Cumulus' weak long-term fundamentals as a result of competition from alternative media, high leverage, and formidable covenant requirements beginning in early 2011. Cumulus, including its investment in Cumulus Media Partners LLC, is the second-largest radio station group with stations in several large, highly competitive markets,...

Companies mentioned in this report are: Cumulus Media Inc.
Action: Review

Cumulus Media Inc.

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