Moody's reviews Gannett

Moody's Investors Service said it placed Gannett Co., Inc.'s A3 senior unsecured long-term ratings on review for downgrade. The Prime-2 commercial paper rating is not affected.

Moody's said the review is prompted by the ongoing and deepening declines in Gannett's newspaper revenue and concern that the company's revenue-enhancement initiatives and cost reductions may be insufficient to prevent continued erosion in free cash flow over the next 12 to 18 months.

The affirmation of the Prime-2 commercial paper rating reflects expectation that Gannett will continue to generate meaningful free cash flow and that it will manage its balance sheet to maintain conservative credit metrics, according to the agency.

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