S&P slashes New York Times rating to junk

[megimoo]

NEW YORK, Oct 23 (Reuters) - Standard & Poor's on Thursday slashed its ratings on the New York Times Co into junk territory and cited concerns about the newspaper publisher's revenue outlook, after it posted a third-quarter loss.
...SNIP...
S&P said a likely U.S. recession will exacerbate declining advertising revenues and prolong the time until the declines will be made more manageable, possibly until 2010.

Until advertising declines are moderated the publisher will not be able to execute revenue strategies and cost cutting measures that are key to stabilizing its earnings, the rating agency added.

"It is our estimate that the company's total revenue will decline in the mid-teens percentage area in 2008 year over year, and that earnings before interest, taxes, depreciation and amortization (after buyout expenditures) will decline by more than 30 percent in 2008 and by about an additional 30 percent well into 2009," S&P said.

It cut the Times' rating three notches to "BB-minus," three levels below investment grade, from "BBB-minus." The outlook is negative, indicating an additional cut may be likely over the next one-to-two years.


http://www.reuters.com/article/bondsNews/idUSN2353585920081023

[AmPat]

Much like liberal media, liberalism with its inherent flaws and reliance on lying and emotionalism, have turned the NY Slimes from a once reputable newspaper into a fantasy rag. Look for it on your favorite grocery counter.

[lacarnut]

Ain't that the shits. A bad bond rating means that they will have to pay higher interest rates if they decide to sell bonds. Defaulting on them is a distinct possibility for the suckers that buy them. Risky, risky.

[Bongo55]

I've had them rated as "Junk" for some time now. :)

[megimoo]

I've had them rated as "Junk" for some time now. :)
I guess old 'Pinch' is going to ride that old 'fish wrap' rag down into the sewer !