Good cash flow diversity from major-network-affiliated TV stations; Competitive market positions with strong local programming; Geographic diversification that helps temper the effect of regional economic softness; Healthy margin and discretionary cash flow potential of the broadcasting business; and High TV station asset values. Elevated debt levels from aggressive, debt-financed station acquisition activity; Volatility in discretionary cash flow, which has tended to be breakeven at best in nonelection years; Financial risk related to potential acquisitions; and Mature revenue growth prospects for the business. The rating on Nexstar Broadcasting Group Inc. reflects its high leverage from aggressive debt-financed acquisitions, its relatively weak EBITDA margin and conversion of EBITDA into discretionary cash flow compared with peers, advertising's vulnerability to economic downturns, and TV
