Fitch Lowers Tribune Rating

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By: E&P Staff Fitch Ratings downgraded Tribune's Issue Default Rating to B- from B+ and removed the company from rating watch.

The company also downgraded Tribune's senior secured revolving credit facility to B/RR3 from BB/RR2; senior unsecured notes to CCC/RR6 from B-/RR6; and subordinated exchangeable debentures due 2029 to CCC-/RR6 from CCC+/RR6.

Fitch lowered the ratings on concerns of the "significant debt burden the transaction places on the company's balance sheet while its revenue and cash flow has been declining."

The firm believes that newspapers, particularly those in large metros, will face difficult times ahead.

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