By: E&P Staff
Standard & Poor’s cut its rating for New York Times Co. debt to “BBB” on Wednesday, citing its 8.5% drop in May advertising revenue and the general difficulties of the newspaper business.
S&P downgraded the senior unsecured debt and corporate credit ratings one notch to “BBB,” two grades above junk status, from “BBB-plus.”
S&P said the Times Co.’s May performance was “lower than anticipated.” Combined with the secular and cyclical declines in the newspaper business as a whole, the Times risk profile needed reassessment, it said.
S&P also rated the Times Co. outlook as “negative,” signaling further a downgrade is likely.