Daily News: January 21, 2013

S&P Lowers Rating on American Media


Reuters is reporting that S&P has lowered its corporate credit rating to CCC+ from B-, with a negative outlook on U.S. publisher American Media citing weak operating performance and the expectation that profitability will remain under pressure.

The rating agency said the negative outlook reflects the potential for a further downgrade if it becomes convinced that the company’s discretionary cash flow will become negative or the margin of compliance with its revolving credit facility senior leverage covenant will deteriorate so that it will need an amendment, which could be difficult to obtain.

To read the full Reuters article, click here.