Moody’s lowers Audacy

Moody's Investors Service said it downgraded Audacy, Inc.'s corporate family rating to Caa2 from B3. In addition, the agency lowered the first-lien credit facility and senior secured second-lien notes ratings of subsidiary Audacy Capital Corp. to B2 and Caa3 from B1 and Caa1, respectively. The outlook is negative.

“The ratings downgrade and negative outlook reflect the increased potential for a distressed exchange, which Moody's would consider as an event of default. The impact of high inflation and interest rates will continue to weigh on Audacy's operating performance and heighten refinancing risks. Audacy's accounts receivable facility, $227 million of the revolving credit facility, and the outstanding term loan all mature in the second half of 2024,” the agency said in a press release.

Moody’s noted Audacy’s leverage as of the second quarter of 2022 stood at 11.3x and it projects it will remain elevated through 2023, possibly complicating a refinancing.

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