Clear Channel Outdoor Takes Ratings Hit
Clear Channel’s Grade Reviewed and Revised, Downward
Standard & Poors (S&P) has cut the rating on Clear Channel Outdoor Holdings (NYSE:CCO) to CCC+ from B- The culprit is the continuing and ongoing cash flow issues and debt at graeater risk before iHeartMedia comes out of bankruptcy.
What is difficult to figure out, not just for CCO but the entire OOH and media industry is why aren’t we flourishing and enjoying the economic ride and stock market gains like the rest of Corporate America?
Credit ratings are opinions about credit risk. S&P ratings express an opinion about the ability and willingness of an issuer, such as Clear Channel Outdoor to meet its financial obligations in full and on time.
Credit ratings also speak to the credit quality of an individual debt issue, and the relative likelihood that the issue may default.
Credit ratings are not absolute measure of default probability. There are many future events and evolutions that cannot be foreseen. The credit rating assignment attempts to provide a standard benchmark. Credit ratings are the predictions of future behavior, it is not an exact science.
According to Financial Services company, Seeking Alpha, financing risks for CCO are high around $2.2B in senior subordinated notes due in March 2020.
Clear Channel Outdoor took an $855M loss from iHeart’s bankruptcy, amounts due on an inter-company note. CCO closing stock price $4.65 4:00 PM 6/26/18. The 52 week high for CCO was $5.47 and the 52 week low was $3.54
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