S&P rates Sinclair notes B

Standard & Poor's said it assigned a B rating to Sinclair Television Group Inc.'s proposed $300 million senior notes due 2021 with a recovery rating of 6, indicating 0% to 10% expected default recovery.

Sinclair Television is a wholly owned subsidiary of Sinclair Broadcast Group Inc.

The proceeds will be used to fund the redemption of its outstanding 9¼% senior secured second-lien notes due 2017.

The ratings reflect the company's satisfactory business risk profile and aggressive financial risk profile, S&P said.

The ratings also consider its significant size, scale and diversity as one of the largest independent TV broadcasters, good EBITDA margin and strong conversion of EBITDA-to-discretionary cash flow, the agency said.

The ratings also take into account the long-term structural changes in the consumption of media with viewers shifting to alternative media for news and entertainment, S&P said.

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