Monday, December 08, 2008

Moody's downgrades Nexstar Broadcasting credit rating

Saying that internet and retransmission revenues are not enough to overcome a lack of traditional advertising, Moody's Investor Service has downgraded the credit rating for Nexstar Broadcasting and its duopoly partner Mission Broadcasting:

Additionally, Moody's believes that given the absence of material political revenue in 2009 combined with continued weakness in the advertising environment, the company will remain challenged in its ability to comply with its financial maintenance covenants, thus constraining liquidity. Moody's also believes that successfully attaining a waiver or amendment under the credit facility may likely result in increased pricing, thereby further stressing the company's cash flow” Moody’s said.

Nexstar and Mission Broadcasting own KSNF and KODE in Joplin and KOLR and KSFX in Springfield.

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