McClatchy’s Raitings Reduced By Moody
April 2, 2008
Tuesday saw Moody’s Investors Service decrease McClatchy Co., the newspaper publisher, from Ba2 to Ba3 for both the company’s corporate side and their probability of default.
Moody’s also downgraded McClatchy’s senior unsecured notes from Ba3 to B1, and speculation is that the news mogul could fall further.
This decrease in ratings will have an impact on $2.8 billion in debt, as Moody’s expects the ongoing financial pressure in revenues from the advertising sector to severely reduce the chances for McClatchy to raise their leverage or make serious moves on cost management or reductions on their current debt.
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