S&P To Keep Eye On Newspaper Publishers

By: Standard & Poor's Ratings Services said it may take more negative ratings actions against newspaper publishers, as a worsening economy pressures declining newspaper advertising revenue further.

The newspaper industry has been plagued by weakening ad sales as more readers and advertisers head to the Internet. The faltering economy is also weighing on the sector, as consumers fret about the continued housing downturn, eroding credit and recession fears.

Several publishers have reported dropoffs in their real estate classifieds, particularly California and Florida, as worsening economic conditions reach into the group.

The ratings agency said companies such as New York Times Co., Gannett Co. and McClatchy Co. have already reported more ad sales softness this year, creating concern that the 'the pace of ad revenue declines could exceed the expectations built into our ratings.'

S&P has a negative outlook on all of the companies, as well as Tribune Co.

On Thursday S&P put its 'B+,' or junk, rating for Journal Register Co. on CreditWatch with negative implications due to softening operating trends in the sector.