MUMBAI (Thomson Financial) - Moody's Investors Service downgraded Young
Broadcasting Inc's corporate family rating to 'Caa1' from 'B3', citing a lack of
material improvement in the company's operating performance, operating margins
that lag peers and continuing cash burn.
The agency also cut Young's probability of default rating to 'Caa2' from
'B3' and its 370 mln usd secured credit facility to 'B1' from 'Ba3'. The ratings
on the 10 pct senior subordinated notes due 2011 and 8¾ pct senior subordinated
notes due 2014 were lowered to 'Caa2' from 'Caa1'. The outlook is negative.
Moody's noted that the ratings also continue to reflect the its belief that
the value of Young's television station assets, while significant, will likely
not adequately cover the company's debt obligations in a distress scenario.
TFN.newsdesk@thomson.com
jro
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