S&P puts Allbritton on watch

Standard & Poor's said it placed the B+ corporate credit rating on Allbritton Communications Co. on CreditWatch with negative implications.

The CreditWatch listing is in response to news that the company is exploring strategic alternatives, which may include a sale of the company, S&P said.

Although the company has not made a decision to pursue any specific transaction, the decision results in considerable uncertainty regarding Allbritton's future financial strategy, the agency said.

The sale of the company could re-leverage the balance sheet and cause deterioration in Allbritton's financial risk profile, especially if the new owner is a financial investor, S&P said.

Even if a sale of the company doesn't occur, the company could seek further dividend distributions, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.