Research Update: Fairfax Media Ltd. Ratings Lowered To 'BB+' As Financial Pressure Mounts; Outlook Stable May 09

Standard & Poors, May 2009

Abstract
Fairfax's earnings weaken, as advertising market deteriorates We are lowering the ratings on Fairfax by one notch We are assigning a stable rating outlook On May 14, 2009, Standard & Poor's Ratings Services lowered its long-term corporate credit and debt ratings on Fairfax Media Ltd. (Fairfax) to 'BB+' from 'BBB-'. In addition, the rating on Fairfax's stapled preference securities (which attract intermediate equity credit from Standard & Poor's) was lowered to 'B+' from 'BB'. The outlook is stable. The rating on the stapled preference securities has been lowered by two notches, reflecting our rating methodology for hybrid instruments issued by speculative-grade issuers. These rating actions reflect the ongoing deterioration of Fairfax's advertising earnings, which have exhibited a level of cyclicality...

Companies mentioned in this report are: Fairfax Media Ltd.,Fairfax Media Group Finance Pty Ltd.,John Fairfax Publications Pty Ltd.,Fairfax New Zealand Finance Ltd.
Action: Downgraded
Action: Outlook: Stable

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

Fairfax Media Ltd.,Fairfax Media Group Finance Pty Ltd.,John Fairfax Publications Pty Ltd.,Fairfax New Zealand Finance Ltd.

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