Moody's lifts Sinclair, rates loan Ba1

Moody's Investors Service said it upgraded Sinclair Broadcast Group, Inc.'s corporate family rating and probability of default rating to B1 from B2, along with its 4 7/8% senior subordinated notes to B3 (LGD 6, 94%) from Caa1 (LGD 6, 94%) and Sinclair Television Group, Inc.'s senior secured revolver maturing June 2011, senior secured revolver maturing December 2013 and senior secured term loan B maturing October 2015 to Ba1 (LGD 2, 10%) from Ba2 (LGD 2, 11%), its senior secured second-lien notes to B1 (LGD 3, 48%) from B2 (LGD 3, 49%) and its 8% senior subordinated notes maturing March 2012 to B3 (LGD 5, 84%) from Caa1 (LGD 5, 85%).

The agency also said it assigned to Sinclair Television's new senior secured term loan B maturing October 2015 a Ba1 (LGD 2, 10%) rating. Sinclair Broadcast's speculative grade liquidity rating is unchanged at SGL-2.

The ratings also were placed on review for further upgrade. The review follows the company's announcement that Sinclair Television is seeking to amend its existing credit agreement, in part to create flexibility to take out other debt, Moody's said.

The upgrades reflect Sinclair's outperformance relative to former expectations, in conjunction with a favorable revenue outlook through the end of 2010 and improving 31% to 33% EBITDA margins generated by the company's sizable and diverse television station group, the agency said.

The ratings also consider its high financial risk and the inherent cyclicality of the broadcast television business, Moody's added.

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