Moodys took a shot at Cumulus Media Inc. and Cumulus stock price dove to a 1½-year low last Thursday.
By BroadCasting & Cable Staff -- Broadcasting & Cable, 6/25/2000 8:00:00 PM
Moody's took a shot at Cumulus Media Inc. and Cumulus' stock price dove to a 1½-year low last Thursday. On June 16, Moody's Investors Service had downgraded the Atlanta-based radio company's ratings to negative from stable. Last Thursday, Cumulus closed at $7.8125 per share, an 18-month low. It edged up Friday and, at midday, was trading at $8.25 per share. Moody's said it downgraded Cumulus's debt ratings because the troubled company will likely have to sell assets and use debt-as opposed to being able to make another public offering-to fund some $420 million worth of pending radio-station deals. Moody's also cited "disappointing margin performance, weak cash-flow generation since the inception of [Cumulus'] acquisition strategy and inability to cover overhead."
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