S&P Global Ratings lowered 's corporatecredit rating to CCC from B-, citing "increased risk of covenant violation."
The issue-level rating on the company's $205 million senior securedcredit facility was downgraded to CCC+ from B.
The outlook on the company is negative.
Barring an amendment or substantial noncore asset sales, thecompany may violate its covenants in May 2017 because of covenant step-downs,the rating agency said Sept. 29.
The agency expects the company's EBITDA to decline year overyear in the fiscal year ending Feb. 28, 2017, due to a "direct formatcompetitor in the Los Angeles market, weakness in Emmis' publication adrevenues, and the company's continued investments in NextRadio."
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