S&P cut Freedom Communications

Standard & Poor's said it lowered Freedom Communications Inc.'s corporate credit rating to B+ from BB and the $950 million secured loan rating to BB- from BBB, and removed ratings from CreditWatch, where they were placed with negative implications on Sept. 14.

The outlook is negative.

S&P said the downgrade reflects significant declines in revenue and EBITDA in Freedom's newspaper business segment and the likelihood for further declines over the intermediate term.

The B+ rating reflects significant debt levels attributable to its recapitalization in 2004 when the Blackstone Group and Providence Equity Partners acquired about 40% equity interest in holding company parent Freedom Communications Holdings Inc., according to the agency.

As of the nine months ended September, leverage was at mid- to high-4 times.

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