Tribune Co., Morris downgraded

Editor & Publisher reports Standard & Poor's Ratings Services downgraded Tribune Co. and Morris Publishing Group Friday. The downgrades moved both companies "deeper into junk territory." S&P warned that lenders "should expect to see little or no money" if the companies default on their debt. 

S&P rated Tribune debt as CC, which is two notes lower than the CCC corporate credit rating it assigned Tribune earlier this week -- while warning the corporate rating could be lowered further. By S&P's definition, a CC rating means the debt "is currently highly vulnerable to nonpayment." 

S&P lowered Morris's credit rating from CCC+ to CCC. According to S&P, "lenders can expect little or no recovery if Morris defaults on its subordinated debt."

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