It’s been five years since Moody’s last changed its rating on Entercom. The investors service has upgraded its rating on the company. Moody’s said the upgrades “reflect Entercom’s good, free cash-flow generation allowing for further improvement in credit metrics, and improved leverage since Moody’s last rating action at the end of 2011.” Moody’s says Entercom’s outlook is stable and expects the company to generate organic revenue growth in FY2016.
The stable outlook reflects Moody’s view that the company will benefit from overall leading audience ratings plus improved performance in its two largest markets, Boston and San Francisco. The outlook also incorporates Moody’s expectation that Entercom will maintain leverage comfortably below 5.0x with good liquidity, including high single-digit percentage free cash flow-to-debt.
The official Moody’s upgrade is: “Entercom’s rating to B1 from B2 and rated its probability of default to B1-PD from B2-PD. Moody’s also upgraded the company’s secured credit facilities to Ba2 from Ba3 and senior unsecured 10.5% notes to B3 from Caa1.” All those fancy financial numbers and letters are good news for the company.
