S&P Lowers Credit Rating On Clear Channel
August 31, 2009 at 6:01 AM (PT)
STANDARD & POOR's Ratings Services TODAY (8/31) lowered its long-term corporate credit rating on CC MEDIA HOLDINGS INC. and its operating subsidiary, CLEAR CHANNEL COMMUNICATIONS INC., to 'SD' from 'CC'.
In addition, S&P lowered the issue-level rating on the participating CLEAR CHANNEL notes to 'D' from 'CC'. These issues include, the 6.25% senior notes due 2011, the 4.40% senior notes due 2011, the 5.00% senior notes due 2012, the 5.75% senior notes due 2013 and the 5.50% senior notes due 2014.
The ratings downgrade follows CLEAR CHANNEL's announcement that it has completed a cash tender offer for $412.1 million aggregate principal of five senior note issues maturing between 2011 and 2014 at discounts to par in the area of 30% to 50%.
"We stated in our AUGUST 4th research report, following the company's announcement of the tender offers, that we would view the completion of the transaction as tantamount to a default given CLEAR CHANNEL's highly leveraged financial profile and the uncertainty, in our opinion, surrounding its ability to service its current debt obligations in full over the next several years," the rating agency said in a statement.