S&P cuts Clear Channel

Standard & Poor's said it lowered its corporate credit and senior unsecured debt ratings on Clear Channel Communications Inc. to BB+ from BBB-.

The agency said that the ratings remain on CreditWatch with negative implications, where they were placed on Oct. 26, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value.

According to S&P, the downgrade and continuing CreditWatch status followed its announcement of a definitive agreement to be acquired in an LBO by a group of investors led by Bain Capital Partners LLC and Thomas H. Lee Partners LP for $36.70 a share, or $18.7 billion.

S&P added that the acquisition announcement comes on the heels of a number of shareholder-favoring initiatives undertaken by Clear Channel, including a $1 billion stock repurchase authorization announced in early September and a $1.6 billion return of capital to shareholders in 2005.

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