S&P lowers Freedom outlook to negative

Standard & Poor's said it revised its rating outlook on Freedom Communications Inc. to negative from stable.

Ratings on the company, including the BB corporate credit rating, were affirmed, the agency said, noting that the outlook revision reflects the current weak operating results at Freedom Communications' newspaper segment, particularly at The Orange County Register. It also reflects the potential for additional borrowings in May 2009 associated with the company's contractual obligation to fund a repurchase of the equity interests held by its minority shareholders.

According to S&P, the ratings reflect Freedom Communication's significant debt levels attributable to its recapitalization in 2004.

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