Fairly diverse group of medium-sized newspapers; Currently good EBITDA margin and discretionary cash flow; Our expectation of continued maintenance of an adequate cushion of compliance with the debt leverage covenant, despite gradual step-downs through 2013. Ongoing secular pressure in the U.S. newspaper industry affecting advertising and circulation levels; Our expectation of revenue and EBITDA declines for the foreseeable future; Concentrations in regionally weak California and Florida markets; High debt leverage, including sizeable underfunded pension obligations; and High refinancing risk related to significant 2017 debt maturities. The corporate credit rating on Sacramento, Calif.-based The McClatchy Co. reflects high leverage, ongoing revenue declines due to the shift of news consumption and advertising to digital media, and the company's exposure to a downturn...
Companies mentioned in this report are:
- The McClatchy Co.
- Knight Ridder Inc.
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