Moody's cuts McClatchy

Moody's Investors Service said it downgraded the McClatchy Co.'s probability of default rating to D-PD from Ca-PD on the company's voluntary bankruptcy proceedings through a plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code.

Moody's affirmed the company's corporate family rating at Ca reflecting an expected below-average recovery on funded debt. In addition, ratings on the senior secured first-lien notes were upgraded to Caa3 from Ca reflecting the secured nature of the collateral relative to the remainder of the capital structure and reflecting material outstanding pension liabilities.

The outlook is stable. McClatchy's ratings will be withdrawn following this rating action.

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