Standard & Poor's warns that might happen in the first half of 2012 “if the operating performance of its radio segment doesn’t improve.” It says the company “has only a thin cushion of compliance with its financial covenants." Another factor: starting next May 15, Radio One will be paying higher interest on its senior subordinated notes, costing it about $20 million extra, per year. Standard & Poor’s is keeping its “B-“ corporate credit rating on the company, but revising the outlook from stable to “negative”, meaning it sees the possibility of a downgrade. S&P does acknowledge CEO Alfred Liggins’ strategy of diversifying out of radio, and says the TV One effort “provides business diversity and access to a more stable revenue stream.” Radio One needs some things on the radio side to settle down, especially the Dallas market, which Liggins pinpointed as a problem on his last quarterly call. Meanwhile, in Houston, Radio One saw an opening for an all-news station, and launched “News 92.1” last week, replacing gospel KROI, Seabrook. That could be a longtime winner, but will probably require cash in the short run.