On March 10, 2008, Standard&Poor's Ratings Services lowered its corporate credit rating on Irving, Texas-based Nexstar Broadcasting Group Inc. and related entities to 'CC' from 'B-', reflecting the company's announced debt exchange offer. The rating outlook is negative. At the same time, we lowered our issue-level rating on Nexstar's 7% senior subordinated notes due 2014 to 'C' from 'CCC'. We placed all other issue-level ratings on Nexstar's secured and unsecured debt on CreditWatch with negative implications. The CreditWatch listing reflects our view that without the consummation of the proposed debt exchange and the flexibility benefit of lower cash interest expense, the company will face a high possibility of violating its bank covenants within the next quarter or two.
