McClatchy faces concerns over debt service and cash flow

24/7 Wall Street: Investors are concerned about McClatchy's debt service and cash flow.

The market is concerned that MNI may have trouble making its debt service as it moves into 2008. The firm recently took a $1.37 billion goodwill write-down, and Moody's said it may cut its debt rating on the company again. According to Reuters: The publisher faces "ongoing pressure on the company's cash flow from declining advertising revenue that contributed to a $1.5 billion write-down of newspaper assets in the third quarter, and the resulting challenge to reduce leverage to the ranges originally incorporated in the 'Ba1' rating," Moody's said in a statement.