S&P: Tribune unaffected

Standard & Poor's said its ratings and outlook on Tribune Co. (A-/stable/A-2) are not affected by the company's announcement that its board of directors has approved a $1 billion stock repurchase authorization.

The board's previous authorization of $2.5 billion, approved in March 2000, has about $160 million remaining on it, the agency said.

S&P said it expects repurchases will be made over an extended period of time, as Tribune has done in the past.

The company generates significant levels of cash flow after capital expenditures and dividends. While these funds will be used to help finance share repurchases, Tribune has expressed its intention to work toward improving its credit measures with the goal of maintaining its current ratings.

The company's financial profile is somewhat weak for the ratings, with pro forma debt to EBITDA for the 12 months ended September 2005 in the 2.7x area, the agency said.

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