The McClatchy Co.'s credit rating was lowered again today. Moody's Investors Service, reacting to the publisher's latest round of cost-cutting, said it had lowered McClatchy's rating to B2 from Ba3.
Moody's said it was concerned that "ongoing significant declines in advertising revenue will continue to pressure (cash flow)."
On Tuesday McClatchy, which owns The Bee, reported a a 15.7 percent decline in August revenue. It also announced another 10 percent cut in staffing and said it was reducing its shareholder dividend by half.
Ba3 is a non-investment grade, or junk-bond, rating.
Often a lower rating can mean higher borrowing costs. But McClatchy's bonds carry a fixed rate, and its bank loans aren't tied to credit ratings, said McClatchy Treasurer Elaine Lintecum. "There's no practical effect" of the downgrade, she said.
McClatchy's stock closed at $3.44, up 4 cents, on the New York Stock Exchange. The Moody's announcement came after the market closed.
Call The Bee's Dale Kalser, (916) 321-1066
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