Moody's cuts Susquehanna Media

Moody's Investors Service said it lowered Susquehanna Media's rating on $600 million senior secured bank credit facilities to Ba2 from Ba1. All other ratings have been confirmed.

Susquehanna recently closed its new $600 million senior secured bank credit facilities. The new facilities were used to purchase a cable system in Carmel, N.Y., refinance the company's previously existing bank debt, and, through a delay-draw term loan A, provide funding for the call of the $150 million of 8.5% senior subordinated notes this May.

Moody's said the downgrade reflects a higher proportion of senior secured debt than contemplated when the original bank ratings were assigned. Considering that greater than 75% of the debt capital structure will be senior secured following the redemption, the risk associated with the bank facilities more closely correlates to Susquehanna's senior implied and, therefore, the bank facilities no longer warrant notching up.

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