The rating on Nexstar Broadcasting Group LLC reflects financial risk from debt-financed acquisitions, the potential for future station purchases, and the mature revenue and cash flow growth prospects of the competitive TV broadcasting business. These factors are only partially offset by the company's cash flow diversity from major network-affiliated TV stations in small and midsize markets, the stations' decent positions in most markets, the good margin and discretionary cash flow potential inherent in broadcasting, and sustainable station asset values. Nexstar owns and operates 44 TV stations in small to midsize markets that reach approximately 7.4% of U.S. TV households. Less intense competition in small and midsize markets allows Nexstar to capture a greater local ad share and lower its programming
