Standard & Poor's Ratings Services said it has lowered its ratings for The McClatchy Co. by one notch and subsequently placed them on negative watch, following McClatchy's March 2008 quarterly earnings release and reflecting a worsening pace of decline in advertising revenue at the company's newspaper publications.
The U.S.-based company's corporate credit rating was lowered to 'BB-' from 'BB', the rating agency said.
McClatchy reported that advertising revenue (including online revenue) declined 15 percent and total revenue declined 14 percent. The company said it expects advertising revenue to fall in the low- to mid-teens percentage area in the June quarter.
The lower credit rating is a financial hit, since it means McClatchy will have to pay out more in interest.
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Related:
Editor & Publisher: "Blood On 'The Street': McClatchy Hits All-Time Low"
Moody's downgrades McClatchy... says outlook is "negative"
