Moody’s Investors Service said it downgraded the corporate family rating of newspaper publisher Journal Register Co. due to declining revenue.
Moody’s said it cut the company’s corporate family rating to “B3” from “B1.” Both ratings are speculative, or “junk,” grade.
The ratings service also lowered the publisher’s probability of default rating to “Caa1” from “B2.” Those ratings are also both considered speculative grade.
Moody’s said the ratings downgrade reflects “the continuing decline of Journal Register’s top line revenues” and “a heightened probability of default stemming from eroding liquidity.”
Moody’s said it was concerned that the Journal Register will not generate enough free cash flow to cover its scheduled 2009 debt repayment obligations.
The service said the outlook for the company’s ratings remains negative.
Journal Register shares rose 3 cents to close at 28 cents.Â
