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NEW YORK (AFX) - Standard & Poor's lowered its ratings on MediaNews Group Inc. Monday following a review of the newspaper publisher's recent acquisitions of the Contra Costa Times and San Jose Mercury News from McClatchy Co.
The company's $880 million of outstanding debt was lowered to "BB-" from "BB," and was taken off CreditWatch. The outlook is now rated stable.
S&P also assigned its "BB-" rating to MediaNews' $896.2 million in senior secured credit facilities. The rating agency said in a report that MediaNews' financial profile will not improve to levels more appropriate for the old ratings.
"The ratings on MediaNews reflect the Denver-headquartered newspaper publisher's heavy debt levels, attributable to growth over the years through acquisitions," according to the report. Copyright 2006 Associated Press. All rights reserved. This material may not be
Copyright 2006 AFX News Limited. All Rights Reserved.
