The initiation of the review was prompted by the company's announcement of their intent to sell about 10% of Clear Channel Outdoor (Outdoor) in an initial public offering, spin off 100% of Clear Channel Entertainment (Entertainment) to shareholders, pay CCCI shareholders a one time $3 per share dividend, and increase the company's recurring quarterly dividend by 50%.

The ratings on review include the following:

Senior unsecured notes -- Baa3

Senior unsecured bank credit facility -- Baa3

Senior unsecured shelf -- (P)Baa3

Senior subordinate shelf - - (P)Ba1

Preferred shelf - - (P)Ba2

Chancellor Media Corporation of Los Angeles senior unsecured - - Baa3

The review will focus on the impact of the IPO of Outdoor and spin off of Entertainment on CCCI's overall business diversity. The review will also strongly consider the impact on CCCI's credit metrics resulting from: the reduction of cash flow available to service CCCI debt; the increase in the recurring dividend, which will reduce free cash flow available for debt repayment; the source of funds to pay the nearly $1.7 billion to shareholders as a one-time dividend; and the allocation of proceeds from any new debt offerings at Outdoor and Entertainment and from the IPO of Outdoor, including the prospects for debt reduction to mitigate the overall impact on the company's credit standing. Moody's will evaluate the effect of the initiatives on the assets supporting the company's debt and the priority of claim of CCCI debt holders' relative to any new debt at Outdoor. Finally, it will evaluate the future methods and strategies to return value to shareholders in the face of a mature, low growth radio broadcasting industry and the impact that these strategies will have on debt investors.

Clear Channel Communications, Inc. with its headquarters in San Antonio, Texas, is a global media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, outdoor displays, live entertainment events and venues, and television stations.