S&P puts MediaNews on watch

Standard & Poor's said it placed its ratings on MediaNews Group Inc., including the BB- corporate credit rating, on CreditWatch with negative implications, reflecting deteriorating operating fundamentals in the company's portfolio of newspaper properties and investments.

In the 12 months ended in March, the total adjusted debt-to-EBITDA ratio increased to the mid-6x area from the high-5x area in the prior year's period. The agency attributed the decline in EBITDA to lower advertising revenue in most of the company's newspaper markets.

S&P noted that MediaNews is also pursuing amendments to financial covenants for the current period in its secured credit facility.

"The CreditWatch listing is not specifically related to the company seeking an amendment to its covenants, rather, it is primarily driven by weak operating performance," S&P credit analyst Emile Courtney said in an agency rating.

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