S&P cuts Alpha Media, facility

S&P said it lowered its corporate credit rating on Alpha Media LLC to B- from B.

The outlook is negative.

The agency also lowered its issue-level rating on the company's $285 million senior secured first-lien credit facility to B from B+. The 2 recovery rating is unchanged and indicates an expectation for substantial recovery (70%-90%; rounded estimate: 85%) of principal for lenders in the event of default.

“The downgrade reflects our view that, barring an amendment, Alpha Media may not be able to maintain compliance with its financial covenants under its senior secured first-lien credit facility as a result of declining EBITDA and quarterly step downs in its total net leverage covenant,” S&P said in a news release.

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