Nexstar Broadcasting Group Inc. 'B+' Rating Affirmed On Unsolicited Bid For Media General Inc.; Outlook Remains Positive

U.S. TV broadcaster Nexstar Broadcasting Group Inc. recently announced that it has made an unsolicited offer to acquire Media General Inc. in a transaction valued at $4.1 billion. We believe the proposed acquisition would improve the combined company's scale and scope, but it would also cause leverage to increase. We are affirming our 'B+' corporate credit rating on Nexstar. The positive rating outlook reflects our expectation that, even though the proposed transaction would cause the combined company's scale and scope of operations to improve, it would also increase the combined company's adjusted debt to trailing-eight-quarter average EBITDA to around 6x at the time of the closing. CHICAGO (Standard&Poor's) Sept. 29, 2015--Standard&Poor's Ratings Services said today that

...+ U.S. TV broadcaster Nexstar Broadcasting Group Inc. recently announced that it has made an unsolicited offer to acquire Media General Inc. in a transaction valued at $4.1 billion. + We believe the proposed acquisition would improve the combined company's scale and scope, but it would also cause leverage to increase. + We are affirming our 'B+' corporate credit rating on Nexstar. + The positive rating outlook reflects our expectation that, even though the proposed transaction would cause the combined company's scale and scope of operations to improve, it would also increase the combined company's adjusted debt to trailing-eight-quarter average EBITDA to around 6x at the time of the closing. CHICAGO (Standard & Poor's) Sept. 29, 2015--Standard & Poor's Ratings Services said today that it affirmed its 'B+' corporate credit rating on Irving, Texas-based TV broadcaster Nexstar Broadcasting Group Inc. The rating outlook remains positive. The positive rating outlook reflects our view that we...

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