Moody's rates LBI Media loans B1

Moody's Investors Service said it assigned B1 ratings to LBI Media Inc.'s $260 million in new senior secured credit facilities: $150 million revolving credit facility due 2012 and $110 million term loan B due 2012. Moody's also affirmed the company's B1 corporate family rating and B3 10 1/8% senior subordinated notes due 2012 . The outlook is stable.

Proceeds from the credit facilities will be used to refinance the company's existing unrated $220 million revolving credit facility.

Moody's said the ratings benefit from LBI's clustering of radio and television stations in the largest Hispanic markets, its internally produced programming that translates into industry leading margins and Moody's expectation that Spanish-language media will continue to achieve above-average growth over the near to intermediate term in comparison to other traditional broadcasters.

The ratings remain constrained by the company's high leverage (7.1x for the last 12 months ended September, as adjusted for Moody's standard adjustments), overall size and concentration of revenues and cash flows to its four markets and the agency's expectations that LBI will remain acquisitive as it seeks to expand its current station portfolio in new and existing markets.

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