S&P: Hubbard loans B+, CCC+

Standard & Poor's said that it assigned a B corporate credit rating to Hubbard Radio LLC and a B+ issue-level rating to the company's $280 million senior secured first-lien credit facilities with a recovery rating of 2, indicating substantial (70% to 90%) recovery for lenders in the event of a payment default.

S&P also assigned a CCC+ issue-level rating to the company's $140 million second-lien term loan C with a recovery rating of 6, indicating negligible (0% to 10%) recovery for lenders in the event of a payment default.

The first-lien credit facilities consist of a $10 million revolving credit facility due April 2016 and a $270 million term loan B due April 2017.

The outlook is stable.

The issuer used the net proceeds along with a $132 million cash equity contribution to fund the acquisition of 13 radio stations from Bonneville International Corp.

The ratings on Hubbard reflect the company's highly leveraged financial risk profile, characterized by lease-adjusted leverage of 5.8x following the transaction as well as Hubbard's weak business risk profile, S&P said.

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