Wednesday, October 22, 2008

Fitch downgrades McClatchy -- outlook "negative"

Boston.com:
Fitch Ratings has downgraded the Issuer Default Rating (IDR) and outstanding debt ratings of The McClatchy Company (MNI) as follows:

-- IDR to 'B-' from 'B+';
-- Senior secured credit facility to 'B+/RR2' from 'BB+/RR1';
-- Senior secured term loan to 'B+/RR2' from 'BB+/RR1';
-- Senior unsecured notes/debentures to 'CCC/RR6' from 'B/RR5'.

The Rating Outlook remains Negative. Approximately $2.1 billion of debt is affected by this action.

The downgrade and Negative Outlook reflect the continued significant top-line revenue pressure and resulting decline in EBITDA.

This is a little different take than yesterday's S&P upgrade from "sell" to "hold." A commenter notes S&P's recent track record isn't good:
S and P ? Would that be the Standard & Poors that rated AIG's credit default swaps " AAA ", when they were really uncollateralized toxic waste? I'd sooner trust a ouija board.

No comments: