The rating on Irving, Texas-based Nexstar Broadcasting Group Inc. reflects the company's thin headroom under its bank covenants, high leverage from aggressive debt-financed acquisitions, 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 minimally offset these factors. Nexstar operates 50 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 two-thirds of its markets. No market contributes more than 15% of Nexstar's total broadcast cash flow, mitigating the impact of regional economic volatility on ad
