Moodys.com
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

 

Terms of One-Time Website Use

 

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

 

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

 

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

 

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

 

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

MOODY'S ASSIGNS A3 RATING TO INFINITY BROADCASTING'S NEW BANK FACILITY; ALSO UPGRADES CBS RADIO INC.'S RATINGS TO A3 (SR. UNSECURED), AND OUTDOOR SYSTEMS RATINGS TO Baa1 (SR. SUBORDINATED)

06 Apr 2000
MOODY'S ASSIGNS A3 RATING TO INFINITY BROADCASTING'S NEW BANK FACILITY; ALSO UPGRADES CBS RADIO INC.'S RATINGS TO A3 (SR. UNSECURED), AND OUTDOOR SYSTEMS RATINGS TO Baa1 (SR. SUBORDINATED) Moody's Investors Service has assigned an A3 senior unsecured debt rating to Infinity Broadcasting Corporation's (Infinity) new $2 billion syndicated revolving bank facility. At the same time, Moody's raised the ratings of Infinity's wholly owned subsidiaries, CBS Radio Inc. and Outdoor Systems, Inc. (OSI). CBS Radio's senior unsecured and subordinated ratings have been upgraded to A3 from Baa3, and to Baa1 from Ba2, respectively. OSI's subordinated ratings have been upgraded to Baa1 from Ba3.

Infinity's rating reflects its significant free cash flow generation ability, modest cashflow leverage, as well as its size, geographic diversity, and low ongoing capital requirements. However, the rating also considers moderate event risk including the prospect of continued cash acquisitions of radio stations and outdoor advertising companies, as well as the likelihood of Infinity purchasing its own stock. The ratings upgrades for CBS Radio and OSI reflect our belief that they are permanent and integral core operating subsidiaries of Infinity, despite the lack of guarantees from Infinity for their respective debt. The outlook for the ratings is stable.

The shares issued in connection with the OSI transaction reduced CBS Corporation's fully diluted stake in Infinity to 64%. CBS is in the process of seeking regulatory approvals for their announced merger with Viacom and is not included in this rating action. Both CBS and Viacom remain on review for potential upgrade. While the CBS and Viacom ratings are being reviewed independently of Infinity, the distance between their ratings and those of Infinity will be somewhat limited due to the majority ownership and common senior management.

Infinity has a superior position in radio (#2 in the US) and dominant position in outdoor advertising (#1 in the US). Infinity,s station group was built through selective acquisitions in the top 50 markets and in 1999 claimed about 10% of the radio industry,s revenues with less than 1% of its stations. Infinity,s outdoor properties penetrate 90 US markets, including the top 50, and the top markets in Canada and Mexico. Infinity also owns a variety of outdoor properties in Europe. The company has successfully tapped the potential in radio and outdoor for EBITDA margins above 40%, with some of the most profitable stations in the US, and with relatively low ongoing capital needs which has resulted in the robust free cash flow. The scope of the company's operations allows the company to tap the national advertising market, which makes the company more competitive with other advertising distribution mediums, and less dependant on local and regional ad spending. However, Moody,s also notes the complete dependence of radio and outdoor on advertising revenues exposes Infinity to economic cycles.

Infinity's financial flexibility enables the company to absorb a relatively large cash acquisition (or several smaller ones) and still bring debt and leverage levels back into the range supportive of an A3 rating. Pro forma for a full year ownership of OSI, 1999 Debt/EBITDA was under 1.5 times. Historically, Infinity management had indicated that Debt/EBITDA of 5.0 times would be appropriate leverage which weighed on the company's ratings. However, since Infinity's IPO, leverage has been consistently modest and cashflow growth has significantly outpaced management's ability to capture waning opportunities. Ultimately, the rating assumes that management will maintain leverage under 2.0 times over the long term and that acquisitions will be within Infinity's areas of core competency.

In March, Infinity announce a planned $1.4 billion cash purchase of 18 radio stations from Clear Channel Communications, Inc. and a planned $425 million cash purchase (including assumed debt) of Go Outdoor Systems Holdings S.A., and its Giraudy subsidiary, a leading provider of outdoor advertising services in France. Moody's anticipates that the company will fund the acquisitions with availability under its bank lines, and make future acquisitions using free cash flow and moderate amounts of debt. Event risk for additional material acquisitions which cannot be funded with intermediate-term cashflows are becoming limited as much of the industry's consolidation has already occurred. In December, Infinity closed its acquisition of OSI and repaid its bank debt. These deals largely fill out Infinity's most obvious needs. What opportunities remain for this historically acquisitive company, are those in smaller US markets, in international markets, and other fill-ins within the top 50 markets as evidenced by the recently announced $90 million stock acquisition of 2 San Antonio radio stations.

Infinity is in the process of establishing a new $2.0 billion senior unsecured credit facility. The facility is incremental to its existing $1.5 billion revolving bank facility. The new facility will be structured as a $500 million 364-day senior unsecured revolver and a $1.5 billion 5-year senior unsecured revolver. The new facilities may be used to backup a commercial paper program, for general corporate purposes, and for acquisitions. The facility will be non-recourse to its parent, CBS, though the existing $1.5 billion facility is guaranteed by CBS.

OSI generates about $400 million in EBITDA and has about $650 in outstanding debt. The implicit support from Infinity, OSI's strong debt protection measures, and the fact that Infinity is not expected to raise any additional debt at the OSI level going forward are supportive of the Baa1 subordinated debt rating. Infinity has managed the debt level at CBS Radio to less than $220 million and is assumed to also provide significant implicit support given the magnitude of the assets and cashflow combined with modest leverage.



The rating assigned is:

Infinity Broadcasting Corporation

Senior Unsecured Bank Debt A3


The ratings upgraded are:

Outdoor Systems, Inc.

Senior Subordinated to Baa1 from Ba3

CBS Radio (formerly American Radio Systems)

Senior Unsecured to A3 from Baa3 (formerly EZ Communications)

Senior Subordinated to Baa1 from Ba2

Subordinated to Baa1 from Ba2


Infinity Broadcasting Corporation, a subsidiary of CBS Corporation, with its headquarters in New York City, New York, operates 162 radio stations, as well as TDI, the Company's outdoor advertising business. Infinity also manages and holds an equity position in Westwood One, Inc.

No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​​​
Moodys.com