S&P tunes CMG Media view to negative

S&P said it revised its outlook for CMG Media Corp. (Cox Media Group) to negative from stable and affirmed its B issuer rating.

“CMG's acquisitions create uncertainty in the business. It is uncertain how CMG will choose to fund its pending acquisition of stations from Tegna, or if the deal is not completed, how it would decide to allocate its current sizable cash balance. We expect CMG to end 2022 with about $820 million-$830 million in cash (primarily due to TV station divestitures in 2022), and for it to generate about $20 million of reported free cash flow in 2023,” S&P said in a press release.

The agency also warned CMG’s S&P Global Ratings-adjusted gross leverage could remain above its 6.5x downside threshold.

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