S&P drops Granite Broadcasting to D

Standard & Poor's said it lowered its ratings on Granite Broadcasting Corp. to D from CCC- because the company did not make its June 1 interest payment of $19.7 million on its 9.75% senior secured notes due 2010.

Granite announced that it intends to make the interest payment within the 30-day grace period provided in the indenture governing the notes, the agency added.

If Granite makes the required interest payment within the grace period, then the agency said it could raise the ratings, most likely to the CCC area, following an assessment of the company's use of station sale proceeds and its ability to continue meeting its financial obligations on a timely basis in the intermediate term.

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