Moody's downgrades Young

Moody's Investors Service said it downgraded Young Broadcasting Inc.'s corporate family and probability-of-default ratings to Ca from Caa3, its $370 million secured credit facility to Caa1 (LGD2, 17%) from B2 (LGD2, 13%) and its 10% senior subordinated notes due 2011 and 8¾% senior subordinated notes due 2014 to C (LGD 5, 73%) from Ca (LGD 4, 68%).

The ratings have been placed on review for further possible downgrade.

The agency said these rating actions were prompted by the announcement that Young has determined to forego making the $6.13 million interest payment due Thursday on its 8¾% notes in an attempt to preserve liquidity and Moody's expectation that a bankruptcy filing in the near future is highly likely.

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