American Radio Sys Rtgs on S&PWatch,Dev After Review.NEW YORK--(BUSINESS WIRE)--S&P CreditWire 8/26/97--Standard & Poor's today placed its single-'B'-plus corporate credit and bank loan ratings, and single-'B'-minus subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. ratings of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Radio Systems Corp. on CreditWatch with "developing" implications, following the company's Aug. 20, 1997 announcement that it will consider actions to maximize shareholder value. Developing implications mean that the ratings may be either raised or lowered. While Standard & Poor's expects considerable consolidation to continue to take place within the broadcasting industry, the company's publicly announced intention to actively seek alternatives prompts this CreditWatch listing. American Radio has announced that possible strategic actions include the sale or merger of the company. Resolution of the CreditWatch listing will follow company actions and will likely reflect the capital structure of the company or any merged or surviving entity. Purchase by a competitor could lead to a considerably stronger operating company operating company A business that engages in transactions with outsiders. , improving the chances for an upgrade. However, over-reliance on debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay could lead to a lower rating. If no action is taken by the company, Standard & Poor's is likely to affirm the ratings. ---CreditWire CONTACT: Scott Dinsdale, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (1) 212-208-8933 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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