S&P downgrades Clear Channel

S&P said it lowered its corporate credit rating on Clear Channel Outdoor Holdings Inc. to CCC+ from B- and removed the ratings from CreditWatch, where they were placed with developing implications on March 15.

The outlook is developing.

At the same time, the agency lowered its issue-level rating on the company's senior unsecured debt and Clear Channel International BV's senior unsecured notes to B- from B.

The recovery rating remains 2, indicating an expectation for substantial recovery (70%-90%; rounded estimate: 85%) of principal in the event of a payment default.

S&P also lowered the issue-level rating on the senior subordinated notes to CCC+ from B-. The 4 recovery rating indicates an expectation for average recovery (30%-50%; rounded estimate: 35%).

The agency said it believes Clear Channel faces high refinancing risks related to the $2.2 billion of senior subordinated notes because of its free operating cash flow deficits and high leverage.

The risk is further elevated by the increasing likelihood that the senior subordinated notes could become a current liability prior to iHeartMedia Inc. and iHeartCommunications Inc.'s bankruptcy emergence, S&P 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.