Investment grade? No kidding??? Well, Moodys did have it at A3 until November 10 of last year.
The rating is damn funny cause last time we checked these guys were in much worse shape than Death Watch Hall of Famer New York Times. At least it's not like anyone cares about what these clownshoes say anymore (we hope).
Some of the profound ruminations in the analysis:
In its review, Moody's will evaluate Gannett's dividend policy and its strategies to stabilize revenue and adjust costs to mitigate the pressure on revenue and free cash flow from long-term secular competition on advertising rates and volume and the severe cyclical slowdown in the U.S. and U.K. economies, as well as potential funding needs for the defined benefit pension plans beyond 2009. Moody's will also assess Gannett's plans to address the maturity by April 2012 of its $3.8 billion of outstanding debt and the effect that refinancing could have on its cost of capital. In addition, Moody's will evaluate the level of cushion Gannett has under its 3.5x senior leverage covenant, although Moody's believes the company will maintain compliance in 2009 assuming the dividend is reduced. Finally, Moody's will consider any notching implications for Gannett's senior unsecured bonds if the guarantee trigger event condition in its bank credit facilities is met.
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