Friday, December 12, 2008

Moody's issues rating downgrade for MediaNews

Moody's Investors Services on Thursday said that William Dean Singleton's MediaNews Group faces increased risk of defaulting on its loans, as it downgraded almost $1 billion of the debt for the parent company of The Denver Post.

Moody's said it is concerned that the "downturn of the company advertising sales will be significantly more protracted than previously anticipated, further straining the company's liquidity profile and heightening the probability of a covenant default."

The rating downgrade comes a week after E.W. Scripps announced that it is placing the Rocky Mountain News on the sales block, as well as its 50 percent interest in the Denver Newspaper Agency.

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