S&P may cut Triple Crown

Standard & Poor's said it placed Triple Crown Media LLC's B corporate credit rating on CreditWatch with negative implications after the company said it would sell its Host Communications Inc. businesses.

Also on watch are the $110 million first-lien loan rated B+ and $30 million second-lien term loan rated CCC+.

While the sale would help the company repay a bulk of first-lien debt and temporarily improve credit measures, S&P said the company would have to rely more on EBITDA generation from the newspaper industry, which is facing challenges.

The local nature of Triple Crown's newspapers, however, somewhat temper this concern, the agency said.

The company's ability to remain in compliance with bank covenants in 2008 given step-up provisions after the December and June 2008 quarters also is a concern, according to S&P.

S&P: United Rentals still on watch

Standard & Poor's said the BB- corporate credit ratings on United Rentals Inc. and its wholly owned subsidiary United Rentals (North America) Inc. remain on CreditWatch with negative implications following the announcement that Cerebus Capital Management LP is not prepared to proceed with the purchase on terms in its merger agreement.

The CreditWatch listing was revised to negative on July 24 when the company announced plans to be acquired by Cerebus in a leveraged buyout. S&P previously said it could lower the corporate credit rating to B+ as a result of the deal, which was expected to occur on Nov. 16.

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