S&P affirms LBI Media

S&P said it affirmed its CC issuer credit rating on LBI Media Inc. and removed the rating from CreditWatch, where it was placed with negative implications on May 22.

The outlook is negative.

At the same time, the agency lowered its issue-level rating on the company's second-lien secured notes to C from CC and affirmed the CC issue-level rating on the first-lien senior secured notes.

S&P also removed all of its ratings on LBI's debt from CreditWatch.

The 2 recovery rating on the company's first-lien senior secured notes and the 6 recovery rating on the second-lien secured notes remain.

“The affirmation and negative outlook reflect that, while LBI made its May 15, 2018 second-lien interest payment within the 30-day grace period, we believe the company will struggle to make the next interest payments on both its first-lien and second-lien notes due in the fourth quarter of 2018 because of its tight liquidity,” S&P said in a news release.

“As such, a below-par debt restructuring – either out of court or through an in-court reorganization – is likely imminent.”

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