S&P Revises Credit Ratings Of Entravision

NEW YORK (AP) ¿ A credit ratings agency affirmed the corporate credit rating of Entravision Communications Corp. on Wednesday, saying it expects the Spanish broadcaster to stay in compliance with financial covenants of its debt.

But Standard & Poor's Rating Services lowered Entravision's recovery rating, which measures the probability a lender can recoup its loans to the company after a payment default.

S&P affirmed Entravision's "B+" corporate credit rating and removed it from CreditWatch, where it was placed for possible downward revision.

Analyst Michael Altberg said Entravision should comply with its debt covenants over the intermediate term after Monday's credit amendment, in spite of possible continued meaningful declines in earnings before interest, taxes, depreciation and amortization.

Altberg said Entravision can stand another 30 to 35 percent EBITDA decline this year and still stay in compliance with its debt covenants.

However, S&P also lowered the company's recovery rating to "3'' from "2'' on its secured credit facilities, meaning lenders have a 50 to 70 percent probability of meaningful recovery of funds. A "1+" rating portends the best chance of recovery and "6'' the lowest.

The credit rating on these secured debt facilities was cut to "B+" from "BB-" and removed from CreditWatch.

Shares of Santa Monica-based Entravision were unchanged at 15 cents on Wednesday.

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