S&P lowers Johnston Press to negative

S&P said it revised the outlook on Johnston Press plc to negative from stable.

The agency also said it affirmed the CCC+ long-term corporate credit rating on Johnston Press and the CCC+ rating on its £225 million senior secured notes due 2019.

The recovery rating on the notes is unchanged at 4, indicating 30% to 50% expected default recovery.

The outlook revision reflects a weak forecast for the company's operating performance in 2017 and 2018, S&P said.

This adds to the pressure on the looming 2019 maturity of the group's outstanding £220 million notes, the agency said.

Conditions in the print newspaper industry are deteriorating faster than previously anticipated, while it has proven very challenging to monetize the growing digital audience and compete against much larger competitors, such as Facebook, on digital advertising, S&P said.

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