S&P may lift McClatchy

Standard & Poor's said it placed the CC corporate credit rating for McClatchy Co. on CreditWatch with positive implications and assigned the company's proposed $875 million senior secured first-lien notes due 2017 a rating of B- with 3 recovery rating.

Proceeds will be used to repay about $614 million in bank debt balances and to refinance the company's $166 million in outstanding senior notes due 2011 (originally issued by Knight Ridder Inc.) and about $24 million 15.75% senior notes due 2014.

S&P also assigned a B- rating with a recovery rating of 3 to the company's proposed extending $201 million class A revolving credit facility and proposed extending $184 million class A term loan due 2013.

Ratings are based on the expectation that the corporate credit rating will be raised to B- with a stable outlook following the closing of the transactions.

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