Moody's: Gannett view negative

Moody's Investors Service said it changed Gannett Co., Inc.'s rating outlook to negative from stable and affirmed the company's existing ratings, including its Ba1 corporate family rating, following the announced acquisition of Belo Corp. for about $2.2 billion (including debt assumed).

Moody's said the outlook change reflects the meaningful increase in leverage associated with the acquisition of Belo in an all-cash transaction, potential for additional acquisitions in the rapidly consolidating local broadcast industry or for other media assets, ongoing execution risks related to stabilizing and growing the publishing business and the execution risks associated with the significant revenue and cost synergies Gannett is projecting.

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