Times Co. downgraded again

Editor & Publisher reports The New York Times Co. has been downgraded by Moody's to "junk" status. In addition, Moody's also assigned the comany a "negative outlook" which means that The Times Co. may be succeptible to further downgrades in the future. The recent $250 million laon from Mexican billinaire Carlos Slim Helu apparently did not boost the comapny's overall appearance and outlook.

"The downgrade reflects Moody's expectation that ongoing deterioration in newspaper advertising revenues will continue to place significant downward pressure on [The Times Co.'s] EBITDA (earnings before interest, taxes, depreciation and amortization) despite aggressive cost management, and that the earnings decline along with a significant increase in the underfunded pension liability will weaken credit metrics considerably," said John Puchalla, Moody's vice president and senior analyst.

Moody's also made some predicitions about the health of The Times Co. in 2009. Analysts expect revenue to drop by 10 percent and EBITDA to fall 30 to 35 percent.
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