The rating on Nexstar Broadcasting Group Inc. reflects its high leverage from aggressive debt-financed acquisitions, its relatively weak EBITDA margin and conversion of EBITDA into discretionary cash flow compared with peers, advertising's vulnerability to economic downturns, and TV broadcasting's mature revenue growth prospects. These factors are only partially offset by Nexstar's cash flow diversity from major-network-affiliated TV stations in midsize markets, broadcasting's good margin and discretionary cash flow potential, and strong station asset values. Nexstar operates 49 TV stations, reaching 8.25% of U.S. TV households. NBC- and CBS-affiliated stations contribute a majority of its broadcast cash flow. The company has No. 1- or No. 2-rated local news programs in three-quarters of its markets. No market contributes more than 15% of
