Moody's upgrades Bonten

Moody's Investors Service said it upgraded Bonten Media Group, Inc.’s corporate family rating to B3 from Caa1, probability of default rating to B3-PD from Caa1-PD, $10 million first-lien senior secured revolver due 2018 and first-lien senior secured term loan due 2018 to Ba3 (LGD2) from B1 (LGD2) and $80 million second-lien senior secured term loan due 2019 to Caa1 (LGD5) from Caa2 (LGD5). The outlook was changed to stable from positive.

The agency said Bonten's B3 corporate family rating reflects its high leverage with a two-year average debt-to-EBITDA ratio of just under 6.5 times as of June 30, lack of national scale and geographic concentration.

Debt ratings are supported by the company's leading audience and revenue share rankings in six of eight markets across diverse network affiliations, Moody’s said.

The upgrade reflects the agency’s expectations that in a scenario with only nominal increases in two-year average EBITDA, free cash flow will be applied to reduce debt balances, resulting in further improvements in leverage over the next 12 months.

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