Moody's Says Sinclair Broadcast May Get Upgrade

NEW YORK (AP) — Moody's Investors Service on Friday put Sinclair Broadcast Group Inc. on review for a possible upgrade after it commenced a refinancing of its debt and came to a deal to renegotiate a local marketing agreement.

Moody's said the review replaces one it initiated in July that looked to downgrade the credit ratings of the Baltimore-based TV station owner. Among the ratings up for review are the corporate family rating, at Caa2, about eight notches into junk territory, and the probability of default rating at Caa3.

Sinclair shares were down 2 cents at $3.59 in late trading Friday.

Sinclair said in August it had reached a deal to pay off about $438 million in convertible notes with new debt.

On Thursday, it announced it commenced the tender offer for the convertible senior notes, which it could be made to buy back from bondholders in May 2010 and January 2011, at 98 cents on the dollar.

The company is paying for the notes by issuing new notes secured by a second lien on the assets securing its bank credit facility.