Saturday, February 14, 2009

MediaNews Slips, Slips Further

Posted By on Sat, Feb 14, 2009 at 4:02 PM

Noting that the credit rating of the Times-Standard 's parent corporation, MediaNews, recently fell into deep junk status, the Reflections of a Newsosaur blog's "Default-O-Matic" registers the company as one of the two big chains most likely to default on its debt in the imminent future. Moody's now rates MediaNews at Caa3 , which represents a 73 percent chance of default. It's the lowest you can go.

Standard & Poor's says :

At the current rate of cash flow decline, it appears likely that MediaNews will pursue a restructuring of some kind over the near term, even following an amendment to the company's credit facility and the sale of the Connecticut Post (and management control over three other Connecticut daily papers) to Hearst Corp.

The company, which owns 54 daily newspapers and countless community weeklies, carries a billion dollars in debt. Its fellow Caa3-er, Morris Publishing, is a much smaller affair.

MediaNews recently announced mandatory furloughs for all staff at all California newspapers, including the Times-Standard .

(h/t Latest Word )

click to enlarge defaultomatic_2.png
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