Fitch downgrades Tribune

Fitch Ratings said it downgraded Tribune Co.'s issuer default rating to BB+ from BBB-, senior unsecured revolving credit facility to BB+ from BBB-, senior unsecured notes due 2006-2027 to BB+ from BBB-, subordinated exchangeable debentures due 2029 to BB from BB+ and the commercial paper program to B from F3. The ratings were placed on ratings watch negative?

The downgrade follows Tribune's announcement that its board of directors had established a special committee to oversee management's exploration of alternatives for creating additional value for shareholders and that it expected the process to conclude by the end of 2006.

Fitch said the downgrade is consistent with its guidance to the market that Tribune had 'very limited room at its prior rating for financial policy revisions, meaningful operational shortfalls or other materially negative strategy changes.' In the agency's view, this announcement marks the second departure by management from stated financial policies in just over a year. While ultimate financial policies are uncertain, operating results remain pressured and the rating watch negative reflects Fitch's belief there is a high probability that the announcement will result in a financial strategy that is detrimental to bondholders.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.