Research Update: The E.W. Scripps Co. Ratings Remain On CreditWatch Negative Pending Acquisition Of TV Stations

U.S.-based TV broadcaster The E.W. Scripps Co.'s acquisition of TV stations from Nexstar Media Group Inc. remains subject to the closing of Nexstar's acquisition of Tribune Media Co. We expect Scripps' $580 million acquisition will be funded with incremental debt, resulting in adjusted pro forma average trailing-eight-quarters leverage of 6.8x-7x in 2019 and remaining above our 5.25x threshold for the 'B+' rating through 2020. All of our ratings on Scripps remain on CreditWatch with negative implications where we placed them Oct. 29, 2018, until the acquisition closes. We expect to lower the issuer credit rating to 'B' from 'B+' if the transaction closes and is funded with incremental debt. We would affirm the 'B+' issuer credit rating if the transaction

...- U.S.-based TV broadcaster The E.W. Scripps Co.'s acquisition of TV stations from Nexstar Media Group Inc. remains subject to the closing of Nexstar's acquisition of Tribune Media Co. - We expect Scripps' $580 million acquisition will be funded with incremental debt, resulting in adjusted pro forma average trailing-eight-quarters leverage of 6.8x-7x in 2019 and remaining above our 5.25x threshold for the 'B+' rating through 2020. - All of our ratings on Scripps remain on CreditWatch with negative implications where we placed them Oct. 29, 2018, until the acquisition closes. - We expect to lower the issuer credit rating to 'B' from 'B+' if the transaction closes and is funded with incremental debt. We would affirm the 'B+' issuer credit rating if the transaction is cancelled or if funding is materially different than our expectations, resulting in forecast leverage improving below 5.25x by the end of 2020....

Research Update