Moody's: Gannett view negative

Moody's Investors Service said it affirmed Gannett Co., Inc.'s A3 senior unsecured and Prime-2 commercial paper ratings.

The outlook was changed to negative from stable.

According to Moody's, the affirmation reflects Gannett's continued significant level of free cash flow generation from its portfolio of newspaper and broadcast properties and the company's conservative use of free cash flow and sale proceeds last year to reduce debt by $1.1 billion.

The outlook reflects the agency's view that the risk of ongoing competitive pressure on newspaper advertising revenue, exacerbated by the current cyclical slowdown in the United States and the United Kingdom, is growing and will continue to weaken Gannett's revenue and EBITDA base and lead to deterioration in credit metrics, the agency said.

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