S&P rates new MediaNews notes B+

Standard & Poor's said it assigned its B+ rating to MediaNews Group Inc.'s $150 million 6.375% senior subordinated notes due 2014 and affirmed its BB corporate credit and B+ subordinated debt ratings on the company.

The outlook is negative.

S&P said the ratings on MediaNews (successor issuer to Garden State Newspapers Inc.) reflect the company's heavy debt levels, attributable to its growth over the years through acquisitions. Debt to net EBITDA (EBITDA available to MediaNews) is in the mid-5x area.

While still weak for the ratings, S&P said the company's overall financial profile is improving, aided by higher net EBITDA, lower debt levels, and reduced interest expense. With its recent refinancings and new bank credit facility, MediaNews now has no meaningful debt maturities until 2009 when its revolving credit facility matures.

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