S&P cuts MediaNews

Standard & Poor's said it lowered MediaNews Group Inc.'s corporate credit and senior secured ratings to B from BB- and removed the ratings from CreditWatch, where they were placed with negative implications Sept. 14.

The agency downgraded the subordinated rating to CCC+ from B.

The outlook is negative.

S&P said the downgrade reflects increasing leverage due to EBITDA declines at the company's newspaper properties and liquidity that is constrained by limited cushion relative to covenants in MediaNews' recently amended credit facility.

The B rating reflects heavy debt levels, attributable to growth through acquisition over the years and limited cushion in bank covenants, the agency said. Total adjusted debt-to-EBITDA ratio was in the high 6 times as of September.

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