While Moody's expects leverage will decline when economic conditions improve, the approaching debt maturity of a portion of its debt structure increases the likelihood that Audacy will have to refinance or extend the maturities of the senior secured credit facility while leverage levels are at very high levels. Senior Secured Bank Credit Facility, Downgraded to B1 (LGD2) from Ba3 (LGD2)Īudacy's B3 CFR reflects the extremely high leverage level (11.3x as of Q2 2022 excluding Moody's standard lease adjustments) and Moody's projection that leverage will remain at elevated levels due the impact of high inflation and slow economic growth through 2023. Senior Secured Regular Bond/Debenture, Downgraded to Caa1 (LGD5) from B3 (LGD5) Speculative Grade Liquidity Rating, Downgraded to SGL-4 from SGL-3 Probability of Default Rating, Downgraded to B3-PD from B2-PD Corporate Family Rating, Downgraded to B3 from B2 Moody's also downgraded Audacy's Speculative Grade Liquidity (SGL) rating to SGL-4 from SGL-3 as a result of the near term maturity of the revolver and accounts receivable facility and the potential for cash burn from operations for the remainder of the year, although liquidity is likely to benefit from asset sale proceeds in the next few quarters.Ī summary of today's actions are as follows: Audacy's accounts receivable facility, revolving credit facility, and term loan are all approaching maturity in the second half of 2024 which heightens refinancing risks. The ratings downgrade and negative outlook reflect the impact of high inflation and interest rates which Moody's projects will delay Audacy's recovery from the pandemic and keep leverage at elevated levels through 2023. (a subsidiary of Audacy) were downgraded to B1 from Ba3 and Caa1 from B3, respectively. In addition, the 1st lien credit facility and senior secured 2nd lien notes ratings of Audacy Capital Corp. New York, Septem- Moody's Investors Service (Moody's) downgraded Audacy, Inc.'s (Audacy) Corporate Family Rating (CFR) to B3 from B2.
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