Radio One Downgraded By S&P
June 29, 2009 at 7:32 AM (PT)
STANDARD AND POOR’S downgraded RADIO ONE INC.’s credit rating to CCC+ from B-, expressing concerns that one of MARYLAND’s largest minority-owned business might overextend itself on its debts, reports BALTIMORE's BUSINESS JOURNAL. The ratings agency said it fears RADIO ONE, which has headquarters in both BALTIMORE and LANHAM, could by the fourth quarter 2009 be operating on more borrowed money than is allowed in its financial covenants.
"Weak radio advertising spending has hurt the company, and that is expected to last through the year. The company lost $59 million in the first quarter of the year and previously had its credit rating downgraded from B to B- in MARCH.
"Anything below a BB rating is not considered investment grade. The credit rating downgrades make it more expensive and difficult for the company to borrow more money."