S&P revises Sesac to negative

S&P said it revised its outlook on Sesac Holdco II LLC to negative from stable and affirmed its B corporate credit rating.

At the same time, the agency affirmed its B+ issue-level rating on the company's first-lien term loan due 2019. The 2 recovery rating is unchanged, indicating an expectation for substantial recovery (70-90%; upper half of the range) of principal for the debtholders in the event of a payment default.

Additionally, S&P affirmed its CCC+ issue-level rating on the company's second-lien term loan due 2016. The 6 recovery rating is unchanged, indicating an expectation for negligible recovery (0%-10%) of principal for the debtholders in the event of a payment default.

"The outlook revision reflects the uncertainty regarding the upcoming arbitration on Sesac's TV and radio licenses, as well as potential regulatory changes from the U.S. Department of Justice's interpretation of the antitrust consent decrees," S&P credit analyst Khaled Lahlo said in a news release.

"These may have a material impact on the company's profitability and free cash flow generation."

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