Moody's: Citadel unchanged

Moody's Investors Service said that Citadel Broadcasting Corp.'s discussions with its lenders about the company's ability to meet its covenant requirements in January - discussions that have included the possibility of seeking relief through a Chapter 11 filing under the U.S. Bankruptcy Code - do not impact Citadel's ratings, including its Caa3 corporate family rating and Ca probability-of-default rating, because a potential restructuring or bankruptcy is already factored into the ratings.

The ongoing weakness in the economy and advertising spending, compounded by rising debt and leverage due to the bank facility's pay-in-kind interest and the expected inability to meet loan covenant requirements as soon as January, has left Citadel with an unsustainable capital structure, the agency said.

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