Fitch downgrades ITV

Fitch Ratings said it downgraded ITV plc's long-term issuer default rating to BB- from BB+ and senior unsecured rating to BB- from BB+.

The outlook was revised to negative from stable.

The downgrade and outlook revision reflects the release of ITV's 2008 financial results, which showed the company's revenues fell 2.5% year-over-year, driven by a U.K. TV advertising market decline of 5%, Fitch said.

The action is a direct result of further signs of a worsening advertising market in the last three months, the agency said, and a lack of visibility over the scale of the drop to expect in 2009.

While the company is taking steps to mitigate these declines, including a significant cost reduction program, dividend cut and planned asset sales, these steps are not without risks and could be outweighed by a further deterioration in the advertising market, Fitch added.

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