Hollinger Intl affirmed

Standard & Poor's said it affirmed its B+ long-term corporate credit ratings on Hollinger International Inc. and Hollinger International Publishing Inc.

The outlook is developing.

S&P said the ratings on Hollinger International and Hollinger International Publishing reflect the results from the completion of the $1.21 billion sale of the U.K. Telegraph Group Ltd. to Press Acquisitions Ltd. Hollinger International will use part of the net proceeds to repay remaining bank debt of about $210 million at Hollinger International Publishing, while having virtually completed the repurchase of the $300 million 9% 2010 senior unsecured notes at Hollinger International Publishing (guaranteed by Hollinger International).

Hollinger International intends to pay a special dividend or to institute a share buyback with the remaining net proceeds, estimated to be in excess of $600 million, although it is unclear as to the how large the actual capital gain may be.

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