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Cumulus Media New Holdings Inc. -- Moody's upgrades Cumulus Media's CFR to B2 and assigns B2 rating to proposed senior secured note; outlook stable

Moody's Investors Service (Moody's) upgraded Cumulus Media New Holdings Inc.'s (Cumulus) Corporate Family Rating (CFR) to B2 from B3 and assigned a B2 rating to the proposed $300 million senior secured note due 2026. The upgrade of the CFR reflects the reduction in pro forma leverage to 5x as of Q1 2019 from 6.1x (excluding Moody's standard lease adjustments) upon exit from bankruptcy driven by growth in EBITDA and debt repayment from free cash flow as well as from asset sales. Cumulus has also entered into an agreement to sell a station in Los Angeles for $43 million which is expected to lead to additional debt repayment.