Regent Communications is the latest broadcaster to face a credit rating review by Moody’s Investors Service, with an eye toward a downgrade. “Regent performed in line with Moody’s expectations for 2008, but our outlook for 2009 broadcasting revenue has worsened since our last action on Regent in October 2008,” the rating agency said. “The review will focus on Regent’s ability to achieve a bank amendment that creates a greater cushion of covenant compliance and provides access to its $75 million revolving credit facility, as well as the impact of the related costs (both upfront and ongoing in the form of higher interest) on Regent’s ability to generate free cash flow. Inability to achieve a viable amendment could result in a multi notch downgrade,” Moody’s said. The review covers $240 million of debt.
