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.
