Friday, January 25, 2008

S&P lowers credit rating of MediaNews

Standard & Poor's has lowered its corporate credit rating of MediaNews Group from "B" to "BB-minus," the Denver Business Journal reports. The owner of the Mercury News, Contra Costa Times, Oakland Tribune and other Northern California newspapers has "heavy debt levels" and "limited cushion in bank covenants." On Nov. 14, MediaNews reported a $1 million loss for the quarter ending Sept. 30, compared to a $13 million profit during the same period a year earlier.

1 comment:

John Bowman said...

Serial newspaper buyer, union-buster and job cutter Dean Singleton is on the verge of doing something no one else has been able to do: Stop himself. As he has bought more and more newspaper chains with Other People's Money, his MediaNews Group has become totally dependent on "synergies" (read layoffs and real estate sell-offs) sqeezed out of newly acquired newspapers to pay his bankers and fund continuing operations. But the supply of properties that haven't already been squeezed like a turnip is fast running out. And when there are no new papers left to buy, and no bankers left to fund his low-credit-rated company? Checkmate.