Moody's introduces new ratings

Moody's Investors Service has introduced two new ratings: probability-of-default ratings and loss-given-default ratings.

The agency's current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The loss-given-default rating methodology will disaggregate these two key assessments in long-term ratings.

The agency said this methodology will enhance the consistency in its notching practices across industries and will improve the transparency and accuracy of its ratings, as Moody's research shows that credit losses on bank loans have tended to be lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations.

Loss-given-default assessments (or LGDs) are assigned to individual rated debt issues - loans, bonds and preferred stock - and also express Moody's opinion of expected loss as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0%-9%) to LGD6 (loss anticipated to be 90%-100%).

Below is a list of the rating actions for Moody's rated companies, sorted by industry. The rating immediately after the company name denotes the corporate family rating and the percentages next to the LGDs represent the expected loss-given-default rates.

U.S. advertising and broadcasting

Adams Outdoor Advertising LP: B1, probability-of-default rating, B2, revolver, term loan, B1, LGD 3, 32%.

Allbritton Communications Co.: B1, probability-of-default rating, B1, notes raised to B1 from B3, LGD 4, 57%.

Barrington Broadcasting Group LLC: B1, probability-of-default rating, B1, revolver, term loan raised to Ba2 from Ba3, LGD 2, 26%, senior subordinated notes, B3, LGD 5, 81%.

Block Communications, Inc.: Ba3, probability-of-default rating, Ba3, revolver, term loan raised to Ba1 from Ba2, LGD 2, 17%, senior notes, B1, LGD 5, 72%.

CMP KC, LLC: Caa1, probability-of-default rating, Caa2, revolver, term loan, Caa1, LGD 3, 35%.

CMP Susquehanna Corp.: B1, probability-of-default rating, B1, revolver, term loan raised to Ba3 from B1, LGD 3, 37%, subordinated notes, B3, LGD 5, 89%.

Cumulus Media, Inc.: Ba3, probability-of-default rating, B1, revolver, term loan, Ba3, LGD 3, 34%.

Data Transmission Network, Corp.: B2, probability-of-default rating, B2, revolver, term loan raised to B1 from B2, LGD 3, 36%, second lien term loan, Caa1, LGD 5, 88%.

Emmis Communications Corp.: Ba3, probability-of-default rating, Ba3, convertible preferred raised to B2 from Caa1, LGD 6, 99%. Emmis Operating Co.: revolver, term loan raised to Ba1 from Ba2, LGD 2, 26%, senior subordinated notes raised to B1 from B2, LGD 5, 81%.

Entercom Radio, LLC: Ba1, probability-of-default rating, Ba1, senior subordinated notes, Ba2, LGD 6, 92%.

Entravision Communications Corp.: Ba3, probability-of-default rating, B1, revolver, term loan, Ba3, LGD3, 32%.

Fisher Communications, Inc., B2, probability-of-default rating, B2, senior notes, B2, LGD 4, 56%.

Granite Broadcasting Corp.: Caa2, probability-of-default rating, Caa2, senior secured notes cut to Caa2 from Caa1, LGD 3, 48%, PIK preferred stock raised to Ca from C, LGD 6, 99%.

Gray Television, Inc., Ba2, probability-of-default rating, Ba2, revolver, term loan raised to Ba1 from Ba2, LGD 3, 34%, senior subordinated notes cut to B1 from Ba3, LGD 5, 87%.

Interep National Sales Radio, Inc.: Ca, probability-of-default rating, D, senior subordinated notes, Ca, LGD 4, 56%.

Interpublic Group of Cos., Inc.: Ba3, probability-of-default rating, Ba2, notes, convertible notes, Ba3, LGD 4, 66%.

Lamar Advertising Co.: Ba2, probability-of-default rating, Ba2, convertible notes raised to B1 from B2, LGD 6, 94%. Lamar Media Corp.: revolver, term loan raised to Baa3 from Ba1, LGD 2, 20%, senior subordinated notes, Ba3, LGD 5, 71%.

LBI Media, Inc., B1, probability-of-default rating, B1, revolver, term loan raised to Ba2 from B1, LGD 2, 21%, senior subordinated notes raised to B2 from B3, LGD 4, 69%.

LIN Television Corp.: Ba2, probability-of-default rating, Ba2, revolver, term loan raised to Baa3 from Ba1, LGD 2, 14%, senior subordinated notes raised to Ba3 from, B1, LGD 4, 69%.

Millennium New Jersey Holdco, LLC: B2, probability-of-default rating, B2, revolver, term loan, B1, LGD 3, 38%, second-lien term loan, Caa1, LGD 5, 89%.

Montecito Broadcast Group, LLC: B2, probability-of-default rating, B2, revolver, term loan, B1, LGD 3, 34%, second lien term loan cut to Caa1 from B3, LGD 5, 87%.

NEP Supershooters, LP: B1, probability-of-default rating, B1, revolver, term loan raised to Ba3 from B1, LGD 3, 40%, second lien term loan, B3, LGD 5, 88%.

Nexstar Holdings, Inc.: B1, probability-of-default rating, B1, senior discount notes raised to B3 from Caa1, LGD 6, 93%. Nexstar Broadcasting, Inc.: revolver, term loan raised to Ba2 from Ba3, LGD 2, 26%, senior subordinated notes due 2014 raised to B2 from B3, LGD 5, 75%. Nexstar Broadcasting, Inc. (Mission Facility): revolver, term loan raised to Ba2 from Ba3, LGD 2, 26%.

NextMedia Operating, Inc.: B2, probability-of-default rating, B2, revolver, term loan, B1, LGD 3, 39%, second lien term loan cut to Caa1 from B3, LGD 6, 91%.

Panavision, Inc., B2, probability-of-default rating, B2, revolver, term loan raised to Ba3 from B1, LGD 3, 31%, second lien term loan cut to Caa1 from B3, LGD 5, 83%.

Paxson Communications Corp.: B3, probability-of-default rating, B3, first priority senior secured notes raised to B1 from B2, LGD 2, 29%, second priority senior secured notes cut to Caa2 from B3, LGD 5, 82%, junior preferred stock, Caa2, LGD 6, 100%.

Radio One, Inc.: Ba3, probability-of-default rating, Ba3, revolver, term loan raised to Ba1 from Ba2, LGD 2, 25%, senior subordinated notes raised to B1 from B2, LGD 5, 81%.

Salem Communications Holding Corp.: Ba3, probability-of-default rating, Ba3, senior subordinated notes, B2, LGD 5, 88%.

Sinclair Broadcast Group, Inc., Ba3, probability-of-default rating, Ba3, convertible senior subordinated notes raised to B2 from B3, LGD 6, 92%.

Sinclair Television Group, Inc.: revolver, term loan raised to Baa3 from Ba1, LGD 1, 8%, senior subordinated notes raised to Ba3 from B2, LGD 4, 56%.

Spanish Broadcasting System, Inc., B1, probability-of-default rating, B1, revolver, term loan, B1, LGD 3, 47%, preferred stock cut to Caa1 from B3, LGD 6, 99%.

Young Broadcasting, Inc.: B3, probability-of-default rating, B3, revolver, term loan raised to Ba3 from B2, senior subordinated notes cut to Caa2 from Caa1, LGD 5, 74%.

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