The E.W. Scripps Co. Ratings Placed On CreditWatch Negative On Higher Leverage Following Planned Acquisition

TV broadcaster The E.W. Scripps Co. announced it is acquiring a portfolio of TV stations from Cordillera Communications for $521 million in a debt-funded transaction. If the acquisition is funded entirely with new debt, our forecasted 2018 average trailing eight quarter leverage will increase to about 5.5x from the high-3x area, which is above our low-4x threshold for the rating. We are placing our ratings, including our 'BB-' issuer credit rating, on CreditWatch with negative implications. In resolving the CreditWatch, we will weigh the modest improvement in the scale and diversity of E.W. Scripps' local media assets against the significant increase in leverage and the company's ability to de-lever over the next 12-24 months as well as their financial policy

...+ TV broadcaster The E.W. Scripps Co. announced it is acquiring a portfolio of TV stations from Cordillera Communications for $521 million in a debt-funded transaction. + If the acquisition is funded entirely with new debt, our forecasted 2018 average trailing eight quarter leverage will increase to about 5.5x from the high-3x area, which is above our low-4x threshold for the rating. + We are placing our ratings, including our '##-' issuer credit rating, on CreditWatch with negative implications. + In resolving the CreditWatch, we will weigh the modest improvement in the scale and diversity of E.W. Scripps' local media assets against the significant increase in leverage and the company's ability to de-lever over the next 12-24 months as well as their financial policy with regards to additional large-scale acquisitions going forward. CHICAGO (S&P Global Ratings) Oct. 29, 2018--S&P Global Ratings today said it placed its '##-' issuer credit rating, on Cincinnati-based The E.W. Scripps Co....

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