Moody's: Cumulus outlook stable

Moody's Investors Service said it affirmed Cumulus Media Inc.'s Caa1 corporate family rating, Caa2 probability-of-default rating and Caa1 (LGD3, 34%) senior secured bank debt ratings, and revised the outlook to stable from negative.

The stable outlook reflects expectation that while leverage will remain very high, Cumulus' operating performance should begin to improve as economic pressures continue to gradually subside, according to the agency.

The company is also benefiting from a restructuring of its operations, the agency noted.

Cumulus' Caa1 corporate family rating reflects its debt-to-EBITDA leverage of 9x at fiscal year-end 2009 and uncertainty surrounding the company's ability to remain in compliance with its total leverage covenant, the agency said.

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