Moody's (nyse: MCO - news - people ) also said it cut the United States-based publisher's probability of default rating to 'Caa2' from 'B3' and other debt ratings to 'Caa1' from 'B2'.
The negative outlook reflects GateHouse's tight liquidity profile, reliance on proposed asset sales, probability of softening of sales further and that current market valuations may prove insufficient to provide full recovery to lenders in a distress scenario.
The negative outlook also incorporates concern that GateHouse's management will continue its pace of acquisition activity in the face of recessionary-like market conditions, Moody's added.
This blog features observations from Randy Turner, a former teacher, newspaper reporter and editor. Send news items or comments to rturner229@hotmail.com
Tuesday, July 29, 2008
Moody's downgrades GateHouse Media
The near certainty that GateHouse Media will default on its credit agreement and "concerns over near term liquidity" were cited by Moody's Investor Service in its decision to downgrade the company's stock Monday.
Gatehouse media will sell 35M assests which mentioned in they last conference. The liquid should be no issue by the deal
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