Fitch Ratings Lowers iHeartMedia's Credit Rating, Writes The Company Is 'Burning Cash'
December 12, 2016 at 3:56 AM (PT)
THE SAN ANTONIO EXPRESS reports, "iHEARTMEDIA INC.’s credit rating was cut by FITCH RATINGS on concern that efforts to tame the struggling media company’s debt could lead to a distressed exchange or bankruptcy." The report notes, "IHEARTMEDIA is burning cash," which cause FITCH to drop its rating to CC from CCC. FITCH added a restructuring “is likely within a year or two.”
“The company has adequate liquidity to get past 2016, but it will likely need to execute on additional liquidity levers to get through 2018,” added the FITCH report, which included that, "iHEARTMEDIA should be able to meet debt payments due THURSDAY. It has about $21 billion of debt outstanding."