Sinclair Broadcast Group

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The rating agency put the Hunt Valleu company on anegative outlook, meaning therw are concerns its positiojn could worsen. S&P cited sluggish ad spendinbg in a recession andnonelection year, plus high debt risk for the The downgrade makes it more expensive for the company to borroe money. Sinclair (NASDAQ: SBGI) operates 58 TV stationds across the country but has also investeed morethan $180 millio in other assets, such as real estate, over the past two S&P analysts said. And they were concerned aboutf debt fromthose purchases. The ratio of the company’s debtw to its earnings was 6.3 times as of Marchj 31, according to S&P.
It would need to bring that beloa 6 times to return toa BB- negative rating. But S&P expectss that ratio could hit 7 timez laterthis year. Sinclair posted an $86 millionb loss in the first quarter ofthe year, largelty on a $130 million non-cash Its revenue fell 17 percent that quartef because of declining loca l and national ad revenue.