S&P upgrades Hemisphere loan

Standard & Poor’s said it affirmed the B corporate credit rating on Hemisphere Media Group Inc.

The outlook is stable.

S&P also said it raised the rating on Hemisphere Media Holdings LLC’s term loan B to B+ from B and revised the recovery rating to 2 from 3. A 2 recovery rating indicates 70% to 90% expected default recovery.

The agency said it raised the ratings on the company’s term loan because of the increased cash flow from the company’s April 2014 acquisition of the Spanish language television business of Media World.

The ratings also reflect the company’s weak business risk based on its limited scale with only a single TV broadcasting station in Puerto Rico and two Latin America-based Spanish language cable networks, S&P said.

The ratings also consider its narrow business focus, primarily targeting Hispanics living in the United States, the agency said.

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