S&P trims McClatchy

S&P said it lowered the issuer credit rating on McClatchy Co. to CC from CCC- and issue-level ratings on the company’s senior secured notes to CCC- from CCC. The issue-level ratings on the company’s senior unsecured notes remain C. S&P placed all the ratings on CreditWatch with negative implications.

“The downgrade reflects the missed interest payment and McClatchy’s entry into a forbearance agreement with its lenders giving it 30 days to pursue a debt restructuring with its lenders and the PBGC. We believe a debt restructuring by McClatchy is inevitable, likely within the next 90 days. We would likely view debt restructuring that delays or defers debt or interest payments, or converts debt to equity, as a selective default,” said S&P in a press release.

The outlook is negative.

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