Fitch rates Clear Channel notes CCC+

Fitch Ratings said it assigned a CCC+ with recovery rating of RR5 rating to Clear Channel Worldwide Holdings, Inc.'s issuance of $2.2 billion senior subordinated notes due 2024.

Clear Channel Worldwide is an indirect wholly-owned subsidiary of Clear Channel Outdoor Holdings, Inc.

The proceeds will be used to refinance the $2.2 billion in outstanding 7 5/8% senior subordinated notes due 2020.

The transaction is leverage neutral, Fitch said.

While the refinancing removes the overhang posed by the sizable near-term maturity, the agency said that the high coupon on the new subordinated debt will increase the annual cash interest burden by about $50 million and further pressure free cash flow generation.

Clear Channel Worldwide and its subsidiary, Clear Channel International BV, have B- long-term issuer default ratings.

The outlook is stable.

Fitch said it remains concerned about the company's elevated leverage, which stood at 9.2x as measured on a total debt with equity credit to operating EBITDA basis.

The ratings are supported by the inherent value of the company's domestic and international outdoor assets and an expectation that Clear Channel Outdoor could reduce its meaningful debt burden through asset sales and cost reductions, the agency said.

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