Moody's: McClatchy to positive

Moody's Investors Service said it changed McClatchy Co.'s outlook to positive from stable following the company's announcement that it closed on the sale of land in Miami for $236 million.

The outlook change reflects the expectation that McClatchy will utilize the proceeds to reduce debt, including its underfunded pension position, which will reduce leverage by about half a turn and lower required contributions to the pension plan over the next few years, the agency said.

Moody's affirmed McClatchy's Caa1 corporate family rating based on the company's continuing high leverage and the ongoing newspaper industry revenue pressure, the agency added.

The debt instrument ratings are not affected, but Moody's updated the loss given default assessments to reflect the updated debt mix.

The B1 senior secured bank credit facility and theB1 senior secured regular bond were changed to was changed to LGD2, 19% from LGD2, 22% and the Caa2 senior unsecured regular bond was changed to LGD5, 79% from LGD5, 80%.

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