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Townsquare Media (TSQ) Corp. Rating Affirmed by S&P; Senior Unsecured Debt Downgraded

August 18, 2015 10:00 AM EDT

Standard & Poor's Ratings Services said that it affirmed its 'B' corporate credit rating on (NYSE: TSQ). The rating outlook is stable.

At the same time, we lowered our issue-level rating on Townsquare's senior unsecured notes to 'CCC+' from 'B-' and revised the recovery rating to '6' from '5'. The '6' recovery rating indicates our expectation for negligible recovery (0%-10%) of principal in the event of a payment default.

We also affirmed our 'BB-' issue-level and '1' recovery ratings on the company's upsized $370 million senior secured credit facility.

"Our 'B' corporate rating on Townsquare is based on our 'weak' business risk profile and 'highly leveraged' financial risk profile assessments," said Standard & Poor's credit analyst Heidi Zhang.

The stable outlook on Townsquare reflects our expectation that the company will maintain "adequate" liquidity, leverage in the 5x-6x area, and moderate discretionary cash flow over the next 12 months.



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