Geographic and cash flow diversity from major-network-affiliated TV stations; TV broadcasting's good margin and discretionary cash flow potential; and TV station asset values. A debt to EBITDA ratio that is stretched for the 'B+' rating level; High financial risk because of the likelihood of additional acquisitions; Weak conversion of EBITDA into discretionary cash flow compared with its peers; Heavy competition from traditional and nontraditional media; and Mature revenue growth prospects for the business. The rating on Nexstar Broadcasting Group Inc. reflects its high leverage from aggressive debt-financed acquisitions, the potential for additional station purchases that could limit credit profile improvement, advertising's vulnerability to economic cycles, and TV broadcasting's mature revenue growth prospects. These factors are only partially offset by the
