Moody’s cuts ContextMedia, facility to Caa1

Moody's Investors Service said it downgraded ContextMedia Health, LLC's corporate family rating and $375 million first-lien credit facility, consisting of a $50 million revolver and $325 million term loan, to Caa1 from B2.

The outlook was changed to negative from stable.

Moody’s said the was downgraded due to materially weaker than expected results since the company was rated and the agency’s concerns that its relationships with advertisers may be impacted by recent negative publicity, which may limit its ability to substantially improve results.

While the company still has a very large cash balance following prior equity raises, its free cash flow to date was also well below expectations, Moody’s explained.

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