McClatchy credit rating cut again... already in "junk" category, McClatchy rating falls lower... ability to repay debt a serious issue

McClatchy's ability to handle its massive debt has become a serious concern, causing Fitch to downgrade McClatchy's rating into deeper junk status. From the Sacramento Business Journal:

The economic picture and newspaper industry conditions have created "relentless" pressure on revenue and made it more difficult for The McClatchy Co. to pay down its debt, Fitch Ratings said Friday as it again downgraded ratings on the publishing company.

Fitch said it is still confident of McClatchy's intent to reduce its debt, but that pressure on its free cash flow raises questions about the company's ability to do so.

The ratings assess a borrower's ability to pay debt and can affect how much the company (NYSE: MNI) pays in interest. Fitch cut its "issuer default rating," already in a "junk" category, from BB-plus to BB with a negative outlook.

Douglas A. McIntyre: "McClatchy is a Night of the Living Dead newspaper."