Moody's rates MediaNews loans Ba3

Moody's Investors Service said it has assigned a Ba3 rating to MediaNews Group, Inc.'s $896 million senior secured credit facilities and confirmed all other ratings.

Ratings assigned include the existing $350 million senior secured revolving credit facility at Ba3, the existing $100 million senior secured term loan A facility at Ba3, the existing $146.2 million senior secured term loan B facility at Ba3 and the proposed $300 million senior secured term loan C facility at Ba3.

Ratings confirmed include the $149 million 6.375% senior subordinated notes due 2014 at B2 and the $300 million 6.875% senior subordinated notes due 2013 at B2.

The corporate family rating is Ba3.

The outlook is stable.

Moody's said the ratings reflect MediaNews' high pro forma financial leverage and vulnerability to print advertising spending and gradual circulation count slippage, but the ratings are supported by MediaNews' scale and geographic scope; the leading and largely defensible market position enjoyed by most of its newspaper titles; and the company's business strategy of sharing economic and financial risks in most of its markets.

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