Moody’s snips Audacy

Moody's Investors Service said it downgraded Audacy, Inc.'s probability of default rating to Ca-PD/LD from Caa2-PD and its corporate family rating to Ca from Caa2. The agency also lowered the ratings on the first-lien credit facility and senior secured second-lien notes of subsidiary Audacy Capital Corp. to Ca and C from B2 and Caa3, respectively. The SGL-4 speculative grade liquidity rating remains unchanged.

The /LD designation, or limited default, reflects the extension of the 30-day grace period for the payment of interest on the 6¾% senior secured second-lien notes due March 2029, which Moody's said it considers a distressed exchange, a default under Moody's definition.

Additionally, Audacy disclosed plans to use the 30-day grace period for the interest payment on its 6½% senior secured second-lien notes due May 2027 and a three-day grace period on its senior secured credit facility due 2024.

“The downgrade of the CFR reflects the high likelihood of further defaults and Moody's expectation for below average recovery for the debt capitalization at default,” the agency said in a press release. Audacy’s leverage for the 12 months ended June 30, excluding Moody's standard lease adjustments, was 25x.

The outlook remains negative.

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