S&P rates new Susquehanna facility BB-

Standard & Poor's said it assigned its BB- rating to radio and cable systems operator Susquehanna Media Co.'s proposed $450 million senior secured credit facility and assigned its recovery rating of 2 to the bank facility.

At the same time, S&P affirmed its BB- corporate credit rating on the company.

The outlook is stable.

S&P said the ratings on Susquehanna reflect its high debt leverage, competition from larger radio operators in key markets, the capital spending needs and modest scale of its smaller cable systems, and the potential for additional debt-financed acquisitions.

Factors partly offsetting these concerns include the company's decent cash flow as a large market radio broadcaster, relatively stable cash flow from its cable business, and good asset values.

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