Moody's cuts Media General

Moody's Investors Service said it downgraded Media General, Inc.'s corporate family rating and senior secured bond rating to B3 from B2 and lowered the company's speculative-grade liquidity rating to SGL-4 from SGL-3.

The rating actions reflect the liquidity pressure from the approaching March 2013 credit facility maturity and heightened risk of a covenant violation, as well as the operating pressure from a weaker advertising market, the agency noted.

The outlook is negative.

The downgrade reflects Moody's concern that Media General does not generate sufficient free cash flow to meet the March 2013 maturity and is thus dependant on credit market access to refinance the loans.

© 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.