iHeartMedia 2012 Annual Report Download - page 26

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23
Downgrades in our credit ratings may adversely affect our borrowing costs, limit our financing options, reduce our flexibility
under future financings and adversely affect our liquidity, and also may adversely impact our business operations
Our corporate credit ratings by Standard & Poor’s Ratings Services and Moody’s Investors Service are speculative-grade and
have been downgraded and upgraded at various times during the past several years. Any reductions in our credit ratings could increase
our borrowing costs, reduce the availability of financing to us or increase the cost of doing business or otherwise negatively impact
our business operations.
Cautionary Statement Concerning Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by us or on
our behalf. Except for the historical information, this report contains various forward-looking statements which represent our
expectations or beliefs concerning future events, including, without limitation, our future operating and financial performance, our
ability to comply with the covenants in the agreements governing our indebtedness and the availability of capital and the terms
thereof. Statements expressing expectations and projections with respect to future matters are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. We caution that these forward-looking statements involve a number
of risks and uncertainties and are subject to many variables which could impact our future performance. These statements are made
on the basis of management’s views and assumptions, as of the time the statements are made, regarding future events and
performance. There can be no assurance, however, that management’s expectations will necessarily come to pass. Actual future
events and performance may differ materially from the expectations reflected in our forward-looking statements. We do not intend,
nor do we undertake any duty, to update any forward-looking statements.
A wide range of factors could materially affect future developments and performance, including but not limited to:
the impact of our substantial indebtedness, including the effect of our leverage on our financial position and earnings;
the need to allocate significant amounts of our cash flow to make payments on our indebtedness, which in turn could
reduce our financial flexibility and ability to fund other activities;
risks associated with weak or uncertain global economic conditions and their impact on the capital markets;
other general economic and political conditions in the United States and in other countries in which we currently do
business, including those resulting from recessions, political events and acts or threats of terrorism or military conflicts;
industry conditions, including competition;
the level of expenditures on advertising;
legislative or regulatory requirements;
fluctuations in operating costs;
technological changes and innovations;
changes in labor conditions, including on-air talent, program hosts and management;
capital expenditure requirements;
risks of doing business in foreign countries;
fluctuations in exchange rates and currency values;
the outcome of pending and future litigation;
taxes and tax disputes;
changes in interest rates;
shifts in population and other demographics;
access to capital markets and borrowed indebtedness;
our ability to implement our business strategies;
the risk that we may not be able to integrate the operations of acquired businesses successfully;
the risk that our cost savings initiatives may not be entirely successful or that any cost savings achieved from those
initiatives may not persist; and
certain other factors set forth in our other filings with the Securities and Exchange Commission.
This list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative and is not
intended to be exhaustive. Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent
uncertainty.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.