S&P lowers LBI Media to D

S&P said it is lowering its issuer credit rating on LBI Media Inc. and all rated debt issues to D. S&P is not revising any recovery ratings at this time.

The downgrade follows LBI's Chapter 11 bankruptcy filing in the Delaware Bankruptcy Court to address its debt-heavy capital structure and unsustainable interest burden. Prior to filing for bankruptcy protection, the company was operating under a 30-day grace period after it deferred its Nov. 15 interest payments due on its first- and second-lien notes.

“The company's radio operations have been challenged because of a secular shift in advertising spend toward digital platforms as well as competitive challenges from larger rivals, which we expect to continue over the next year,” S&P said in a news release.

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