On September 29, 2016, S&P Global Ratings lowered its corporate credit rating on Emmis Communications Corporation to CCC from B- and its $205 million senior secured credit facility to CCC+ from B. “The downgrade reflects our expectation that Emmis could violate its covenants in May 2017 due to covenant step-downs, barring an amendment or significant noncore asset sales,” said S&P Global Ratings’ credit analyst Heidi Zhang. S&P Global also projects EBITDA will decline in the fiscal year ending February 28, 2017, from the previous year due to a direct format competitor in the Los Angeles market, weakness in Emmis’ publication ad revenues and the Company’s continued investments in NextRadio. Read more on distressed companies.
About Kerry Mastroianni
Kerry Mastroianni, the editor of The Distressed Company Alert, has been researching distressed and bankrupt companies for over 18 years. As a 10-year employee of New Generation Research, she is also a data editor for Bankruptcy Week and the editor for our annual Bankruptcy Yearbook & Almanac. Prior to Kerry’s employment at NGR, she worked for eight years as a research analyst for KPMG’s corporate recovery practice.