S&P rates Granite Broadcasting, loans B

Standard & Poor's said it assigned Granite Broadcasting Corp. its preliminary B corporate credit rating. The outlook is stable.

At the same time, the agency said it assigned preliminary B issue-level ratings to the company's proposed first-lien credit facilities, which are expected to consist of a $5 million revolving credit facility due 2017 and a $215 million senior secured term loan B due 2019.

The preliminary recovery rating is 4, indicating an expectation of average recovery for first-lien lenders in the event of a payment default.

S&P said the stable outlook reflects an expectation that the company will maintain well in excess of a 10% EBITDA cushion of covenant compliance and adequate liquidity over at least the next 12 to 18 months as a result of EBITDA growth and modest debt repayment.

The agency said the preliminary B corporate credit rating reflects S&P's view that the company has a weak business risk profile and a highly leveraged financial risk profile.

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