U.S. media and entertainment companies have “generally healthy” liquidity. “They will be supported by predictable revenue and high profit margins in the current credit crunch,” according to a report by credit rating agency Fitch Ratings.

Companies with diversified businesses, such as Walt Disney Co., News Corp., Time Warner Inc. and Viacom Inc., are best positioned in the market, Fitch analysts Jamie Rizzo and Mike Simonton said, according to a Bloomberg report.

The companies have “no significant exposure” to Lehman Brothers, which filed for bankruptcy, and are unlikely to be affected by the mergers of Citigroup Inc. and Wachovia Corp., as well as Bank of America Corp. and Merrill Lynch & Co. “The industry's cash on hand and free cash flow are more than debt coming due over the next three years,” according to Fitch.

Media companies have become attractive borrowers for banks and bondholders due to these factors, the analysts wrote.

According to Fitch, Tribune Co. has a “very limited margin of error.” An eight percent decline of earnings before interest, taxes, depreciation and amortisation would violate loan terms, Bloomberg reported.

Broadcasters Belo Corp. and Hearst-Argyle Television Inc. will pay down debt which matures in the next 15 months by existing bank credit.

In a market with fewer potential buyers, some media companies, such as CBS Corp., Cox Communications Inc., Disney and Thomson Reuters Corp. have sold assets within the last two years, according to Bloomberg.

“The potential to deconsolidate media portfolios to pay down debt could further support creditors in a downturn,” according to Fitch.