Moody's downgrades LBI Media

Moody's Investors Service said it downgraded LBI Media, Inc.'s probability of default rating to D-PD from Caa2-PD/LD following news that the company has filed a petition for bankruptcy relief under Ch. 11.

The corporate family rating was downgraded to Caa3 from Caa2 and the subordinate PIK notes were downgraded to Ca (LGD 5) from Caa3 (LGD 5).

The outlook remains negative.

The company is pursuing a financial restructuring in order to implement an agreement with 100% of the company's first- lien debt holders to reduce LBI's debt by more than $350 million.

Moody's said it will then withdraw all of the ratings due to the bankruptcy filing.

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