Good cash flow diversity from major network-affiliated television stations; Competitive market positions and 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 Television station asset values. Aggressive, debt-financed station acquisition activity has elevated debt levels; Likelihood of additional acquisitions keeps financial risk high; Weak conversion of EBITDA into discretionary cash flow for a television broadcaster; and Mature revenue growth prospects for the business. The rating on Nexstar Broadcasting Group LLC reflects financial risk from debt financed acquisition activity, the potential for future station purchases, and the mature revenue and cash flow growth prospects in the competitive television broadcasting business. These factors are only
