CMG Media Corp. Ratings Placed On CreditWatch Negative Due To Increasing Refinancing Risk

Local TV broadcasters face increasing risk as consumers navigate away from pay-TV, as do radio broadcasters as advertisers continue to shift to other forms of advertising (primarily online advertising). Amid these secular challenges, we have little visibility into CMG Media Corp.'s ability to materially improve credit metrics ahead of upcoming debt maturities in 2026 and 2027. As a result, we placed all our ratings on CMG Media Corp., including our 'B-' issuer credit rating, on CreditWatch with negative implications. In resolving the CreditWatch placement, we will evaluate the company's financial policy, liquidity, ability to substantially reduce leverage over the next year, and refinance its upcoming debt maturities at rates that allow it to sustainably generate positive free operating cash flow

...June 20, 2024 - Local TV broadcasters face increasing risk as consumers navigate away from pay-TV, as do radio broadcasters as advertisers continue to shift to other forms of advertising (primarily online advertising). Amid these secular challenges, we have little visibility into CMG Media Corp.'s ability to materially improve credit metrics ahead of upcoming debt maturities in 2026 and 2027. - As a result, we placed all our ratings on CMG Media Corp., including our 'B-' issuer credit rating, on CreditWatch with negative implications. - In resolving the CreditWatch placement, we will evaluate the company's financial policy, liquidity, ability to substantially reduce leverage over the next year, and refinance its upcoming debt maturities at rates that allow it to sustainably generate positive free operating cash flow (FOCF). NEW YORK (S&P Global Ratings) June 20, 2024--S&P Global Ratings today took the rating actions listed above. The CreditWatch placement reflects uncertainty about the...

Ratings Action