Rating services hint at possible McClatchy upgrade

Fitz and Jen bring word that McClatchy's attempt to refinance some of its outstanding debt could help the company's liquidity and might result in an upgrade to its credit rating.  Standard & Poors and Moody's both hinted today that a McClatchy upgrade could be in the works.

But S&P says it still has major concerns about McClatchy's debt and the overall decline in the newspaper business. 

“We still remain highly concerned about steep leverage levels at McClatchy and long-term secular rates of decline in newspaper ad revenue. The current 'CC' rating reflects our belief that the company's high leverage would not be manageable over the long term given significant negative secular trends in the U.S. newspaper industry.”

McClatchy's "CC" rating reflects junk bond status.
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