S&P: Media General on watch

Standard & Poor's said it placed its BBB- corporate credit rating on Media General Inc. on CreditWatch with negative implications following the company's announcement it would post an EPS loss in the range of $0.26 to $0.30 in the March 2007 quarter.

The CreditWatch listing reflects weaker-than-expected operating performance in the company's newspaper publishing and TV broadcasting businesses and comes at a time when the financial profile is weak for the ratings, the agency said.

While meaningful credit measure improvements are not expected until 2008 because of the absence of major political and Olympic revenues in 2007, as well as high planned capital spending, S&P said it will review the expected pace of de-leveraging in light of the lower earnings guidance.

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