Downgrade II: S&P cuts ratings on GCI debt

Standard & Poor’s said the ratings downgrade reflects a worsening pace of decline in advertising revenue at the company’s newspaper publications, MarketWatch says. In particular, S&P said it worried Gannett’s revenue could fall 10% and earnings 20% through 2009.

S&P’s move followed a similar downgrade announced yesterday by Moody’s. Downgrades threaten to increase GCI’s borrowing costs, or limit financing availability, at a time when the credit markets are already in turmoil. Gannett needs more options, not fewer.

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