S&P lowers Cumulus Media

Standard & Poor's said it lowered its corporate credit rating on Cumulus Media Inc. to B- from B.

The outlook is stable.

S&P said it also lowered the issue-level rating on the company's senior secured credit facilities to B- from B. The recovery rating on this debt remains at 3.

Recession-induced weak advertising demand has led to steep revenue and EBITDA declines for Cumulus.

S&P said it believes Cumulus will be unable to comply with its leverage covenant when it is reinstated in the first quarter of 2011, as per its amended credit agreement.

The stable outlook reflects S&P's belief that Cumulus' financial profile provides sufficient support for the additional interest costs and fees of an amendment, should the company need one.

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