The ongoing U.S. recession stemming from the spread of the coronavirus has already begun to significantly reduce spending on radio advertising. We believe declines in radio advertising revenue will materially weaken broadcaster Beasley's credit measures and liquidity position, which could make it difficult for the company to refinance upcoming debt maturities in 2022 and 2023. Additionally, we believe the company will breach its covenant in 2020 absent an amendment or waiver. As a result, we are lowering the issuer credit rating on Beasley to 'CCC+' from 'B'. The negative outlook reflects our view that Beasley will need to obtain a waiver from its lenders to avoid breaching its covenants in 2020 as economic weakness from the COVID-19 outbreak reduces advertising
