S&P: Washington Post on watch

Standard & Poor's said it placed its BBB+ long-term corporate credit and senior unsecured ratings, as well as its A-2 short-term commercial paper rating, on Washington Post Co. on CreditWatch with negative implications.

"The CreditWatch listing reflects our concern that operating performance and discretionary cash flow will remain depressed as a result of more restrictive regulation of for-profit education businesses, as well as our expectation that continued sharp declines in newspaper advertising revenues will outweigh the company's cost-reduction measures," said S&P credit analyst Hal Diamond in a news release.

While S&P said it does not anticipate significant weakening of the company's modest leverage or good liquidity, the agency said it would reassess the prospects for the education and newspaper businesses and the level of support these units can provide the rating.

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