Standard & Poors has cut their debt rating on Clear Channel Outdoor Holdings to CCC+ from B- amid ongoing cash flow issues and debt being more at risk before their parent company iHeartMedia comes out of bankruptcy.

Refinancing risks are high around $2.2B in senior subordinated notes due in March 2020, the firm notes, saying resolution there will change its developing outlook. Insider highlighted Clear Channel Outdoor’s pending debt maturities from earlier this month.

S&P also commented on Clear Channel taking an $855M loss from iHeart’s bankruptcy, amounts due on an inter-company note that CCO knows will not be repaid.

Insider’s Take – Not a surprise to see the downgrade given CCO’s high leverage level, the iHeartMedia bankruptcy and $2 billion in 2020 maturities.  We will keep you updated as iHeart moves through the bankruptcy process.

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