By: E&P Staff
Standard & Poor’s downgraded The McClatchy Co.’s corporate credit rating further into junk territory Friday on expectations that the chain’s revenue and cash flow will experience “meaningful declines” in coming months.
S&P downgraded McClatchy to B+ from BB-. The speculative grade rating indicates a company has the ability to meet its financial obligations currently, but that adverse business conditions “will likely impair the obligor’s capacity or willingness to meet its financial commitment on the obligation.”
In early afternoon trading Friday, McClatchy shares (NYSE: MNI) were at a new low of $4.95, down 11 cents, or 2.17% from the open. Coming into trading, McClatchy had traded in a 52-week range of $5.02 to $28.73.