Moody's ups LBI outlook to stable

Moody's Investors Service said it changed the outlook for LBI Media, Inc. to stable from negative based on its expectation that leverage will decline over the next year and LBI will generate positive free cash flow in 2011, supported primarily by growth in the television segment.

Moody's said it also affirmed LBI's Caa1 corporate family and probability of default ratings, as well as its B1 senior secured bank debt and Caa2 senior subordinated bond ratings.

LBI's high leverage at about 12 times debt-to-EBITDA for the trailing 12 months ended March 31 and negative free cash flow pose challenges for managing a business reliant on cyclical advertising spend, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.