Moody’s Bottom Rung – media edition
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Moody’s published its “U.S. Bottom Rung” on Tuesday a list of companies that the corporate credit ratings agency thinks are at most risk of defaulting on their debt. There are 283 companies on the list, which is current as of March 1, including some near and dear names for people who love the media business.
Why do this? The Wall Street Journal offers some possibilities:
“Sounds like Moody’s may be trying to get out in front on defaults, given they were perhaps a little behind on subprime mortgages and commercial mortgage-backed securities,” said David Resnick, managing director at investment banking firm Rothschild Inc. which works on many corporate bankruptcies and restructurings.
Moody’s and credit-rating rival Standard & Poor’s Corp., were criticized by the Senate in hearings late last year about the effectiveness of the ratings agencies.
The Journal also says Moody’s enters risky territory by naming some companies that say they are in, as the paper put it, decent fiscal health.
That said, here are the media companies, along with their debt rating and outlook (don’t worry about the specific ratings – they’re all different ways of saying “junk”):
- Allbritton Communications Company (B3, negative)
- American Media Operations Inc (Caa2, negative)
- Barrington Broadcasting Group LLC (Caa1, negative)
- Blockbuster inc (Caa1, negative)
- Carmike Cinemas Inc (B2, negative)
- Charter Communications Inc (Caa3, stable)
- Citadel Broadcasting Corp (B3, negative)
- Emmis Communications Corporation (Caa1, negative)
- Freedom Communications Inc (Caa1, rating under review)
- GateHouse Media Operating Inc (Caa1, negative)
- Grande Communications Holdings Inc (Caa2, negative)
- Gray Television Inc (B3, negative)
- Hollywood Theaters Inc (B3, negative)
- ION Media Networks Inc (Caa3, negative)
- MediaNews Group Inc (Caa3, negative)
- Morris Publishing Group LLC (Caa3, negative)
- NV Broadcasting LLC (Caa2, negative)
- Penton Business Media Holdings Inc (Caa2, negative)
- Questex Media Group Inc (Caa1, negative)
- R.H. Donnelley Corporation (Caa1, negative)
- Reader’s Digest Association Inc (Caa3, negative)
- Regent Broadcasting LLC (B3, stable)
- Salem Communications Holding Corp (B2, negative)
- Sirius XM Radio Inc (Ca, positive)
- Source Interlink Companies Inc (Caa1, negative)
- Univision Communications Inc (B3, negative)
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Radio.. What Happened? Is citadel finally dead? Is radio dead. Will they piece meal out clusters? Who would buy anyway.
To be fair there is many names that have been on such lists for years! Especially Charter for example.
The report indicates some companies that are not doing too bad so its not all bad news I guess.