Moody's lowered McClatchy's corporate family rating to "Caa2" from "Caa1" and upgraded its possibility of default rating upon the company's completion of the exchange offer, which would exchange the existing senior unsecured notes for new 15.75 percent senior unsecured guaranteed notes due July 2014.
Moody's said the offer constitutes a distressed exchange and a default. S&P also expressed concern about the exchange at a discount to par value, saying it is tantamount to a default and lowered its corporate credit rating to "SD" from "CC".
Odd: the report says the downgrade by Moody's and S&P happened Friday, but I couldn't find any published reports on it until late Monday.
Hat tip: comments
Update: More info at Fitz and Jen here.
Update #2: As promised, S&P raised its corporate rating on McClatchy to "CC" from "SD" -- which is an improvement but still deep in junk territory.
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5 comments:
Why do you think the stock tanked Friday? This explains all. Now my question is does MNI file for bankruptcy tonight before the second quarter ends? I think that possibility is very, very high. They can't make their quarterly payments that come due July 1.
Under the $.50 / share heading, remarks were made about furloughs being announced at Charlotte on top of cuts and wage concessions. Were there earlier furloughs announced at Charlotte AND was that the "Great Wage and Cut Act" that separated people late spring. Those seem to be the only cuts etc that are in general knowledge. Were there more that were more secretive?
@ 6:25
The possibility is as low as your IQ is high, so I assume next to zero.
You Go Gary !
It does seem McClatchy is heading toward bankruptcy quite quickly.
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