By: E&P Staff
Standard & Poor’s Ratings Service (S&P) put The McClatchy Co. on negative credit watch, warning it may contemplate downgrading its rating to two notches above junk status.
After Sacramento-based McClatchy’s acquisition of Knight Ridder Inc. last year, S&P lowered the chain’s rating to “BBB,” an investment grade. The negative watch indicates the rating could be downgraded to “BBB-minus.”
S&P has downgraded several newspaper companies in recent months, and the McClatchy warning suggested the agency was wary of continuing troubles in the industry.
McClatchy opened for trading at $35.49 Friday, 10 cents above the low for its 52-week trading range of $35.39 to $53.24.