McClatchy's Cash-Eating Pensions Erode Credit

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By: Charles Mead | Miami Herald

Credit quality at McClatchy Co. is suffering more than any of its peers from rising pension costs that are increasing leverage at the lowest-rated major U.S. newspaper publisher.

Underfunded pensions will keep McClatchy's ratio of debt to earnings before interest, taxes, depreciation and amortization at 6.8 times this year rather than 5.3 times if it did not have the retirement contributions, according to Moody's Investors Service.































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