Moody's cuts CMP to Caa2

Moody's Investors Service said it downgraded CMP Susquehanna Corp.'s corporate family and probability-of-default ratings to Caa2 from B2 and speculative grade liquidity rating to SGL-4 from SGL-2.

The agency lowered the $100 million revolving credit facility due 2012 and $700 million term loan facility due 2013 to Caa1 (LGD3, 39%) from B1 (LGD3, 37%), and $250 million senior subordinated notes due 2014 to Ca (LGD6, 91%) from Caa1 (LGD5, 89%).

The outlook is negative. This concludes the review for downgrade that began on Oct. 15.

According to Moody's, the downgrades reflect concerns over CMP's increasing financial risk as a result of weakening credit metrics in a slow economy.

CMP's Caa2 rating reflects the company's debt-to-EBITDA leverage of 9.8x at June 30, substantial revenue concentration in two markets, weak liquidity position as well as the mature, cyclical radio industry, the agency said.

Ratings are supported by the company's relatively strong margins, large market presence and high proportion of local advertising revenue, the agency noted.

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