S&P cuts McClatchy to SD

Standard & Poor's said it lowered its corporate credit rating on McClatchy Co. to SD (selective default) from CC.

The agency said it also lowered its issue-level ratings on each of McClatchy's senior unsecured notes originally issued by Knight Ridder Inc. to D from C. The recovery rating on these notes remains at 6.

At the same time, the agency said it affirmed its rating on McClatchy's secured debt at CC. The recovery rating on the secured debt remains at 3.

Additionally, the agency said it lowered its issue-level rating on McClatchy's 15.75% senior notes due 2014 to C from CCC-. The recovery rating on the new notes remains at 6.

The rating action follows McClatchy's announcement that it has exchanged $24 million of new senior notes and $3 million in cash for a total of $103 million of senior notes originally issued by Knight Ridder Inc., the agency said.

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