Good cash flow diversity from major-network-affiliated TV stations; Geographic diversification that helps temper the effect of regional economic softness; and Largely resilient TV station asset values. Very little headroom under tightening bank covenants; Elevated debt levels from aggressive, debt-financed TV station acquisitions; Mature revenue growth prospects for TV broadcasting business; and Increased competition for audience and advertisers from traditional and nontraditional media. Standard&Poor's Ratings Services' rating on Nexstar Broadcasting Group Inc. is on CreditWatch with negative implications, reflecting the company's thin headroom under tightening bank covenants, high leverage from aggressive debt-financed acquisitions, and relatively weak conversion of EBITDA into discretionary cash flow compared with peers. The CreditWatch placement also reflects advertising's vulnerability to economic downturns and TV broadcasting's
