Clear Channel Comm downgraded To 'B+,' to remain on CreditWatch negative - S&P |
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Published
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Fri, 20 Apr 2007 16:39
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MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it lowered its corporate credit and senior unsecured debt ratings on Clear Channel Communications Inc to 'B+' from 'BB+'. The ratings remain on CreditWatch with negative implications.The downgrade and continuing negative CreditWatch implications are based on the company's confirmation that the private equity consortium jointly led by Bain Capital Partners LLC and Thomas H. Lee Partners LP has raised its offer for the company to 39 usd per share, from its previous bid of 37.60 usd.The proposed total transaction value is now approximately 27.1 bln usd, assuming the inclusion of roughly 7.7 bln usd of existing debt.'The downgrade stems from our conclusion that if the proposed transaction goes through, credit measures will be heavily burdened by buyout debt,' said S&P credit analyst Michael Altberg. 'Although the company has not announced specific financing terms of the new capital structure, we would expect a marked increase in leverage if the deal is consummated.'On review of the financial and operating strategies of the new owners, the ratings could be lowered further. If the deal is not approved by shareholders, ratings will be revisited, S&P said.The ratings were placed on CreditWatch negative on Oct 26, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value.tf.TFN-Europ_newsdesk@thomson.compcm/gpCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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