S&P downgrades LIN TV notes to B+, CCC+

Standard & Poor's said it affirmed its B corporate credit rating on LIN TV Corp. The outlook is stable.

At the same time, S&P said it revised its recovery rating on LIN Television Corp.'s $200 million senior unsecured notes to 2 from 1. The 2 recovery rating indicates S&P's expectation of substantial recovery for noteholders in the event of a payment default, the agency said. S&P said it lowered its issue-level rating on this debt to B+ from BB-.

S&P said it also revised its recovery rating on LIN Television's 6½% senior subordinated notes due 2013 to 6 from 5. The 6 recovery rating indicates S&P's expectation of negligible recovery for noteholders in the event of a payment default, the agency said. The agency said it lowered its issue-level rating on this debt to CCC+ from B-.

The revision of the recovery ratings on the existing debt issues reflects their lower recovery prospects after the higher-ranking credit facilities are added to the company's capital structure, the agency said.

"The corporate credit rating affirmation reflects our view that the transaction is essentially leverage-neutral and will slightly improve LIN's lease-adjusted EBITDA coverage of interest," said S&P credit analyst Deborah Kinzer, "by replacing higher-coupon debt with lower-cost bank borrowings."

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