S&P Downgrades Cumulus After Skipped Bond Payment
S&P downgraded Cumulus Media after the radio broadcast group announced it didn't make a $23.6 million interest payment on its 7.75 percent senior notes due 2019. The move on the payment -- due Nov. 1 -- was likely strategic, with…
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the aim of preserving cash or pressuring bondholders into a subpar debt exchange, S&P said. It also said a debt restructuring is probably imminent. It said it lowered its corporate credit rating on Cumulus from CCC to D and its issue-level rating on the senior notes from CC to D. Cumulus said the nonpayment and downgrade don't "mitigate that the company is performing well and ... will have no impact on its operating constituents."