Weekly Downgrade Wrap-Up (Two Bankruptcies, One Technical Upgrade, and a Chrysler)
As usual, we have a week's worth of ratings actions from ratings agencies Standard & Poor's and Moody's. We excluded the ratings changes on the week's two bankruptcies, which were Odyssey Investment Partners' Dayton Superior Corp. and Bruckman Rosser Sherrill's Eurofresh. Company: Banc of America Capital Investors Sponsor: Cumulus Media Inc. Downgrade: Moody's downgraded the company's corporate family rating to Caa1 from B3 and its probability of default rating to Caa1 from B3. Highlights: "The downgrade of the PDR to Caa2 incorporates Moody's view that there is increasing probability that Cumulus will likely default under its tightening financial covenants over the near term, absent an amendment. Moody's considers that Cumulus' lenders will agree to loosen the level of the company's already- elevated financial maintenance tests only in exchange for significantly higher pricing, which in turn will serve to tighten the company's liquidity profile."
