S&P: Spanish Broadcasting unaffected

Standard & Poor's said the letter received by Spanish Broadcasting System Inc. (B-/stable) from minority equity holder Discovery Group I LLC asking the board to retain an investment bank to review strategic alternatives has no immediate effect on ratings.

S&P said it believes the company's chairman and chief executive officer, Raul Alarcon, Jr., who controls 80% of voting rights, historically has taken an independent stance. In addition, the agency said concerns about corporate governance at Spanish Broadcasting are fully incorporated into the current rating level.

Maintaining the rating requires the issuer to preserve its liquidity and full access to its $25 million revolving credit facility, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.