S&P cuts Gray TV view to negative, rates loan BB-

Standard & Poor's said it revised its outlook on Gray Television Inc. to negative from stable and assigned a BB- rating and a recovery rating of 1 to Gray's proposed $600 million senior secured credit facility.

The B+ long-term corporate rating was affirmed.

S&P sad the rating reflects its high debt leverage, the mature growth and somewhat cyclical nature of TV advertising and the potential for additional cash acquisitions, share repurchases or dividends that may limit improvement in Gray's credit measures.

These risks are partially offset by the strong market position of Gray's major network-affiliated TV stations, the good margin and free cash flow potential of TV broadcasting and resilient station asset values, S&P added.

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