The rating on Nexstar Broadcast Group LLC reflects financial risk from debt financed acquisition activity, the potential for future station purchases, and the mature revenue and cash flow growth prospects in the competitive television broadcasting business. These factors are only partially offset by the company's cash flow diversity from major network-affiliated television stations in small and mid-size markets, the stations' decent positions in most markets, good margin and discretionary cash flow potential of the television broadcasting business, and sustainable station asset values. Including pending acquisitions and dispositions, Nexstar will own and operate approximately 44 television stations, with 13 duopoly markets, in 27 small to mid-size markets. Included in its portfolio are stations affiliated with the three major broadcast networks. Of
