Moody’s Investors Service already had a “Probability of Default Rating” of D for Regent Communications, so this week’s Chapter 11 filing in US Bankruptcy Court was no surprise. But now that it is a reality, the ratings service has evaluated the expected recovery by lenders and downgraded Regent’s corporate credit rating.
“Moody’s Investors Service affirmed Regent Broadcasting LLC’s Probability of Default Rating of D and downgraded the Corporate Family Rating to Caa3 following Regent’s prearranged reorganization filing with the U.S. Bankruptcy Court in the District of Delaware effective March 1, 2010. This action concludes the review for possible downgrade initiated on January 6, 2010. The rating outlook is stable,” the ratings agency said. “The Caa3 Corporate Family Rating reflects Moody’s view on expected lender recovery,” it addeed.
The following summarizes Moody’s rating actions and current ratings:
Regent Broadcasting LLC
….Corporate Family Rating, Downgraded to Caa3 from Caa1
….Probability of Default Rating, Affirmed at D
….Senior Secured Bank Credit Facility, Downgraded to Caa3 from Caa1
….Outlook, Changed To Stable From Rating Under Review
….Speculative Grade Liquidity Rating, Unchanged at SGL-4
Regent Broadcasting LLC owns and operates 62 stations located in 13 markets, Moody’s noted.