"... in light of Carlos Slim's recent investment in the New York Times Co., JP Morgan analyst Alexia Quadrani decided to take a deeper look at the debt level of companies in her coverage universe -- the NYT, McClatchy and Gannett.
"OK so in her estimation McClatchy stands out as the company most at risk. Those amended credit agreements (7x debt to EBITDA in 2009) the company got back in September are only going to carry them so far. But Quadrani suspects that the way things are going for the industry at large -- ad revenue declines that have yet to hit bottom -- McClatchy is going to run into trouble in the later half of 2009. "We believe it still faces a threat of default in coming quarters," she concludes."
Look for this concern to be raised at McClatchy's Fourth Quarter 2008 Earnings Conference Call in 2 weeks.
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