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The rating agency put the Hunt Vallehy company on anegativd outlook, meaning there are concernws its position could worsen. S&P citede sluggish ad spending in a recessiohn andnonelection year, plus high debt risk for the company. The downgrads makes it more expensive for the company toborrowq money. Sinclair (NASDAQ: SBGI) operates 58 TV stationd across the country but has also invested morethan $180 million in other assets, such as real estate, over the past two S&P analysts said. And they were concerne about debt fromthose purchases. The ratiop of the company’s debts to its earnings was 6.3 timese as of March 31, according to S&P.
It wouls need to bring that below 6 times to returh toa BB- negative But S&P expects that ratio could hit 7 timess later this year. Sinclair posted an $86 million loss in the firsr quarter ofthe year, largely on a $130 millioh non-cash charge. Its revenue fell 17 percentt that quarter because of declining local and nationaload revenue.
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