Isn’t this poetic justice? (Hat tip – Daniel G.)
Moody’s Investors Service said on Thursday it may cut its ratings on New York Times Co into junk territory, citing concerns about continuing revenue declines and risks associated with refinancing its debt.
The New York Times posted a quarterly loss from continuing operations on Thursday and said advertising revenue at its news media group dropped 16 percent for the quarter.
Newspaper advertising market conditions are likely to remain challenging in 2009 and continuing revenue declines will make it difficult for the company to bring its credit metrics in line with its investment grade rating, Moody’s said in a statement.
It will also make it hard for the publisher to execute its plans to improve liquidity, Moody’s added.
Moody’s said it may cut the New York Times from “Baa3,” the lowest investment grade. Downgrades into junk territory can significantly increase a company’s borrowing costs.
Risks from refinancing maturing debt also prompted the review for downgrade, Moody’s said.
The New York Times said it is looking for ways to reduce its debt, but said it is a difficult time to make asset sales.
Anyone smelling a bailout plea coming on?blog comments powered by Disqus
August 26, 2012 10:59 AM by Doug Powers
June 15, 2012 08:21 AM by Michelle Malkin
NYC Mayor Bloomberg set to ban sale of sweetened drinks larger than 16 ounces; Update: Bloomberg supports ‘National Donut Day’ tomorrow
May 31, 2012 10:23 AM by Doug Powers
February 22, 2013 09:50 AM by Michelle Malkin
April 15, 2013 03:08 PM by Doug Powers
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