S&P ups Media General, rates loans BB, BB-

Standard & Poor's said it raised its corporate credit rating on Media General Inc. to B+ from B.

The outlook is stable.

At the same time, S&P assigned its BB issue-level rating to the company's proposed $60 million first-out revolving credit facility due 2018. The recovery rating is 1, indicating the expectation of very high (90% to 100%) recovery for lenders in the event of a payment default.

The agency also assigned its BB- issue-level rating to the proposed $35 million term loan A due 2018 (being co-issued by WLAJ-TV LLC and WXXA-TV LLC) and $865 million term loan B due 2020 with a 2 recovery rating, indicating the expectation of substantial (70% to 90%) recovery for lenders in the event of a payment default.

"The rating action reflects the improvement in discretionary cash flow from the refinancing and our expectation that trailing-eight-quarter leverage will remain at 6x or below over the intermediate term," S&P credit analyst Daniel Haines said in a news release.

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