Blog Post

Newspaper Roundup: NYTCo; Denver Post/Rocky Mountain News; Sun-Times

imageMoody’s cuts NYTCo’s credit rating to junk: Although the NYTCo (NYSE: NYT) has taken some crucial, if incremental, steps to improve its liquidity this week, Moody’s Ratings Service still has concerns based largely on expectations over lower advertising rev will pressure earnings and therefore downgraded the company’s credit. The rating outlook is negative, with the change going to Ba3 from Baa3. About $675 million in debt is affected, about half of NYTCo’s $1.1 billion in outstanding debt.

Union offers concessions to Denver Post (via Romenesko): The Denver Newspaper Agency, which handles ad and business operations for MediaNews Group’s Denver Post and E.W. Scripps’ Rocky Mountain News, says it needs wage and benefit concessions by Jan. 16 as it seeks to renegotiate its $130 million of bank debt. So far the Post has agreed to discuss givebacks, but reps for Newspaper Guild members who work that the troubled Rocky have been asking that other unions hold on negotiations until Scripps decides whether or not to close it.

Sun-Times’ unlucky quarter century: As a former city editor for the Chicago Sun-Times, newspaper blogger (and Managing Partner of Tapit Partners) Alan D. Mutter is well-positioned to take a look back at 25 years of bad luck — or as he gently calls it, “sometimes criminal and almost always dysfunctional corporate governance.” The company’s board has been ousted by dissident shareholders and the company’s is trading at about 8 cents on Friday afternoon. Mutter continues dissection of the Sun-Times troubles in a second post here.