Moody's slices Salem Media

Moody's Investors Service said it downgraded Salem Media Group, Inc.'s corporate family rating and senior secured notes rating to Caa1 from B3. The outlook was changed to negative from stable.

“The downgrade reflects weaker than expected performance that Moody's projects will persist in the next few quarters. Leverage has increased to 6.6x as of Q4 2019 from 6.0x as of Q4 2018,” said Moody’s in a press release.

“Results have continued to be impacted by the shift of ad dollars to digital mobile and social media, competitive conditions for local radio ad dollars, and declines in local block programming revenue. Free cash flow generation has continued to deteriorate and was only modestly positive in 2019. The coronavirus outbreak is also expected to lead to lower revenue and EBITDA levels in the near term and higher leverage levels,” the agency said.

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