McClatchy Stock Hammered -- As S&P Warns Of Downgrade

Posted Wednesday, October 17, 2007 12:00 am

By: E&P Staff The McClatchy Co. stock fell sharply in mid-day Wednesday, as Standard & Poor's added more bad news to the newspaper chain's report Tuesday that its profits dropped 55% in the third quarter.

Just before noon Eastern time, McClatchy was trading at $17.91, down $1.01, or 5.34%. In the past 52 weeks, it has traded in a range of $18.50 to $44.95.

S&P said it may cut its rating on McClatchy debt deeper into junk territory, adding that its review will focus on the "long-term prospects" of its newspapers and the cash flow they can generate.

S&P now rates McClatchy "BB-plus," one level below investment grade.

McClatchy has said it expects to pay down $500 million in debt in 2008, ending the year with about $2 billion of debt.

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McClatchy Stock Hammered -- As S&P Warns Of Downgrade

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