The 'B-' corporate credit rating on Irving, Texas-based Nexstar Broadcasting Group Inc. reflects the company's high debt leverage from aggressive debt-financed acquisitions, advertising's vulnerability to economic downturns, and TV broadcasting's mature revenue growth prospects. The company's cash flow diversity from major network-affiliated TV stations in midsize markets and TV broadcasting's good EBITDA margin minimally offset these factors. Nexstar operates 51 TV stations, reaching 8.2% 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 Nexstar's total broadcast cash flow, mitigating the effect of regional economic volatility on ad demand. Even so,
