Thursday, May 21, 2009

S&P cuts New York Times rating deeper into junk status

Standard & Poor's has cut its rating on the New York Times Co. deeper into junk status, citing rising leverage in the midst of a newspaper industry slump.

A drop in ad revenue aggravated by the long U.S. recession will likely lead to a spike in leverage at the Times by 2010, S&P said in a statement. The rating agency said it expects the economy to begin to recover late this year, but there is significant uncertainty about when the newspaper ad slump will begin to heal.

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