Moody's may upgrade Salem Communications rating

AP News
Posted: Nov 16, 2009 3:57 PM

Moody's Investor Service said Monday it may raise its credit ratings for radio broadcaster and publisher Salem Communications Holding Corp.

Shares jumped 23 cents, or 5.9 percent, to $4.12 in afternoon trading.

The agency said improving credit conditions should allow the company to refinance its $321 million in debt, which matures over the next year.

Moody's put Salem's B3 corporate family rating and Caa1 probability of default rating on review for possible upgrade. Both ratings are non-investment grade.

It also assigned a non-investment grade B2 rating to Salem's proposed $300 million note offering. The notes are due in 2016.