Tuesday, February 10, 2009

McClatchy shares hit new low

Shares of The McClatchy Co. dropped 20 percent Tuesday to a new low of 55 cents per share, before creeping back up to 59 cents per share.

The falling stock price was just another blow to the Sacramento newspaper publisher, which on Friday was downgraded deeper into junk status by two ratings companies .

Standard & Poor’s dropped McClatchy to “CCC-plus,” seven steps below the “B” investment grade. Fitch Ratings downgraded the company to “CCC” from “B-minus.”

A lower grade increases the cost to borrow money, a major concern for corporations such as McClatchy reeling from the recession.

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