S&P Cuts NY Times Co. Debt Rating, Citing May Revenue Drop

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.