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NEW YORK (AFX) - Credit ratings agency Fitch Ratings on Friday downgraded $3.1 billion of Tribune Co. debt to junk status, a day after the newspaper publisher set up a committee to oversee a strategic review designed to lift shareholder value.
Fitch's move follows a similar downgrade by Standard & Poor's Ratings Services, which also cut its rating on Tribune to junk status on Friday.
On Thursday, Tribune signaled it may either sell or break up the company, whose assets include the Chicago Tribune, Los Angeles Times, television stations and the Chicago Cubs. Tribune may also decide to go private.
The company also has restructured two partnerships that it inherited as part of the Times Mirror acquisition in 2000.
"While ultimate financial policies are uncertain, operating results remain pressured and the rating watch negative reflects Fitch's belief there is a high probability that yesterday's announcement will result in a financial strategy that is detrimental to bondholders," Fitch said.
Tribune shares closed up $1.94, or 6.1 percent, at $33.99 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.
