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NEW YORK (AFX) - Credit ratings agency Moody's Investors Services said Wednesday it placed publisher Reader's Digest Association Inc. under review for a possible downgrade due to concern about the company's liquidity.
The rating affects approximately $300 million in debt.
Reader's Digest's corporate rating is "Ba1," while its rating for senior unsecured notes are rated :Ba2." The outlook for the company was changed to "Under Review" from "Negative."
"The review is prompted by increasing debt to fund acquisitions and return of capital to shareholders, deterioration in cash generation, and Moody's concern regarding the company's liquidity position," the agency said.
Shares of Reader's Digest were down 3 cents at $12.76 in afternoon trading on the New York Stock Exchange. Copyright 2006 Associated Press. All rights reserved. This material may not be
Copyright 2006 AFX News Limited. All Rights Reserved.
