S&P: Knight Ridder debt on watch

Standard & Poor's said it placed its ratings on the senior unsecured debt assumed by The McClatchy Co. from Knight Ridder Inc. on CreditWatch with negative implications.

At the same time, all other ratings on McClatchy, including the BB+ corporate credit rating, were affirmed, the agency said.

The outlook is stable.

S&P noted that the CreditWatch listing considers section 6.12 of the bank agreement, which states that if the credit facilities were both below investment grade, McClatchy shall, within 10 days thereafter, cause each material subsidiary or subsidiaries that account for at least 80% of consolidated EBITDA to guarantee McClatchy's obligations under the loan documents.

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