S&P lifts Sinclair, rates loan BB

Standard & Poor's said it raised its corporate credit rating on Sinclair Broadcast Group Inc. to B+ from B and removed it from CreditWatch, where it was placed with positive implications in May.

The agency also said it assigned Sinclair Television Group Inc.'s proposed $270 million tranche B term loan maturing October 2015 a rating of BB, which is two notches higher than the B+ corporate credit rating on Sinclair Broadcast. The recovery rating is 1, indicating an expectation of 90% to 100% recovery in a default.

The agency also said it raised Sinclair Television's senior secured credit facilities to BB from BB-. The recovery rating remains unchanged at 1.The recovery rating on its second-lien notes was revised to 3, indicating an expectation of 50% to 70% recovery in a default, from 5. The rating on this debt was raised to B+ from B-. The ratings on the company's unsecured debt issues were raised to B- from CCC+, with a recovery rating of 6, indicating an expectation of 0% to 10% recovery in a default.

The ratings reflect an expectation that Sinclair will be able to reduce its leverage further by the end of 2010 through revenue and EBITDA growth and lower debt balances, S&P said.

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