Night of the living dead newspaper chain McClatchy (NYSE: MNI) got hit with another downgrade today. Fitch cut the company’s issuer default rating further into the junk word, dropping it to "BB". It is also keeping the firm on its negative outlook list which means the rating may be cut again, according to the AP
McClatchy is famous for buying rival newspaper chain Knight-Ridder just as the industry hit its death spiral. The company’s shares were over $50 two years ago. They now change hands for just above $10.
Wall St. is concerned, for good reason, that McClatchy might have problems with that $2.5 billion in debt it carries on the balance sheet.
Douglas A. McIntyre