Standard&Poor's Ratings Services' rating on Nexstar Broadcasting Group Inc. is on CreditWatch with negative implications, reflecting the company's thin headroom under tightening bank covenants, high leverage from aggressive debt-financed acquisitions, and relatively weak conversion of EBITDA into discretionary cash flow compared with peers. The CreditWatch placement also reflects advertising's vulnerability to economic downturns and TV broadcasting's mature revenue growth prospects. Nexstar's cash flow diversity from major-network-affiliated TV stations in midsize markets, broadcasting's good margin and discretionary cash flow potential, and largely resilient TV station asset values minimally offset these factors. On April 11, 2008, Standard&Poor's placed its ratings on Irving, Texas-based Nexstar on CreditWatch with negative implications, reflecting our heightened concern about the company's ability to
