MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services revised its
outlook on Young Broadcasting Inc. to negative from developing and affirmed its
ratings, including the 'CCC+' corporate credit rating, on the company.
The outlook cut reflects concerns about the company's lengthening search for
a buyer for KRON-TV, its underperforming MyNetworkTV affiliate in San Francisco,
and the company's dwindling cash balances against the backdrop of a soft
economy.
S&P said its rating on Young Broadcasting reflects the company's significant
debt burden, discretionary cash flow deficits, ongoing challenges at KRON-TV and
advertising's vulnerability to economic downturns and variability during the
election cycle.
However, these factors are minimally offset by Young's portfolio of major
network TV affiliates in small and midsize markets, and the asset values of its
stations--particularly KRON-TV, a VHF station in a top-10 market, S&P said.
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