Young downgraded after skipping interest payment


Following last week’s decision by Young Broadcasting to skip its bond interest payment due January 15th, Moody’s Investors Service has lowered the company’s ratings on some $856 million of debt. Moody’s downgraded Young’s Corporate Family Rating and Probability of Default Rating to Ca from Caa3 and $370 million secured credit facility ($20 million revolver, $350 million term loan) to Caa1 from B2. In addition, Moody’s downgraded Young’s 10% Senior Subordinated Notes due 2011 to C from Ca and 8¾% Senior Subordinated Notes due 2014 to C from Ca. The ratings have been placed on review for further possible downgrade.