Moody's cut iHeartCommunications Inc.'s probability of default rating to D-PD from C-PD/LD after a Chapter 11 bankruptcy filing by the company's parent iHeartMedia Inc. and certain of its subsidiaries.
The rating agency on March 15 affirmed the company's corporate family rating at Caa3. The senior secured debt including the term loans and PGN notes were affirmed at Caa2 and the senior unsecured notes were affirmed at C.
Moody's said that it will now withdraw the ratings due to the bankruptcy filing.
The filing followed weeks of negotiations with the company's creditors after the radio company in February missed an interest payment on a series of unsecured senior notes. Earlier this month, Moody's said it considered the expiration of iHeartCommunications' 30-day grace period for the missed interest payment of the senior unsecured notes due 2021 as a limited default.
