Fitch lowers Tribune

Fitch Ratings said it has downgraded the following ratings on Tribune Co.: issuer default rating to D from CCC; senior guaranteed revolving credit facility to CC/RR4 from CCC+/RR3; senior guaranteed term loan to CC/RR4 from CCC+/RR3; senior unsecured bridge loan to C/RR6 from CC/RR6; senior unsecured notes to C/RR6 from CC/RR6; and subordinated exchangeable debentures due 2029 to C/RR6 from CC/RR6.

By definition, issuers with D ratings have defaulted on all of their obligations, the agency said.

Fitch noted that the CC/RR4 rating on the guaranteed debt reflects the average recovery prospects (31%-50%) for that class of debt.

The issue rating of C/RR6 on Tribune's bridge loan, senior unsecured debt, and subordinated notes reflect the very weak recovery prospects for unsecured creditors in a reorganization, the agency said, adding that the C rating represents the lowest possible issue rating for a defaulted security with below average or poor recovery prospects.

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