S&P; May Lower Rating for Clear Channel

Clear Channel Communications Inc.’s credit rating may be lowered by Standard & Poor’s because of acquisitions and capital spending that increased debt of the largest owner of radio stations.

Clear Channel, which owns 1,225 radio stations, has made several purchases in recent years, buying AMFM Inc. in 2000 for $23.8 billion. The company, like other radio and television broadcasters, has been hurt because the economic slowdown caused an advertising slump.

Clear Channel may have difficulty meeting the debt level required for a June 30, 2003, bank covenant if there isn’t a second-half recovery in the ad market, according to an S&P; report.

Clear Channel rose 41 cents to $51.41 on the NYSE.