S&P: Journal Register on watch

Standard & Poor's said it placed its ratings for Journal Register Co., including the B- corporate credit rating, on CreditWatch with negative implications.

The CreditWatch listing reflects the company's announcement that it has hired a financial advisor to help evaluate its strategic options, which the agency said it believes signals a growing concern regarding the company's financial prospects.

While Journal Register did not specify potential outcomes, S&P added that it believes that a sale of part or all of the company's assets may be among the strategic alternatives, noting that it estimates that any potential purchase price would need to exceed 7x the cash flow generated by the asset in order for the company to reduce leverage.

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