Fitch rates Clear Channel notes CCC

Fitch Ratings said it assigned a CCC/RR4 rating to Clear Channel Communications' $750 million of senior secured notes, which is an add-on to the $1 billion of 9% senior secured notes due March 2021 that were issued in February.

Clear Channel has a CCC issuer default rating. The outlook is stable.

Fitch expects $250 million of the proceeds will be used to repay Clear Channel's 5% senior unsecured legacy note due March 2012. The remainder will be used for general corporate purposes.

The ratings reflect the company's highly leveraged capital structure, with significant maturities in 2014 and 2016; the considerable interest burden that pressures free cash flow generation; technological threats and secular pressures in radio broadcasting; and the company's exposure to cyclical advertising revenue.

The ratings are supported by the company's leading position in the outdoor and radio industries, as well as the positive fundamentals and digital opportunities in the outdoor advertising space, the agency added.

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