New York Times outlook now negative - Moody's (Dinosaur Media DeathWatch™)

Reuters ^ | August 27, 2007 | Staff

[abb]

NEW YORK, Aug 27 (Reuters) - Moody's Investors Service on Monday changed its outlook on the New York Times Co. (NYT.N: Quote, Profile, Research) to negative, from stable, citing increased pressure on the publisher's advertising from other media as well as from a downturn in the housing market.

A negative outlook indicates the company's debt is likely to be downgraded over the next 12 to 18 months. The New York Times is currently ranked "Baa1," the third-lowest investment grade rating.

"The negative rating outlook results from increased pressure on the company's retail and classified advertising from cross media competition and the downturn in the housing market," Moody's said in a statement.

The Times is suffering from a downturn in print advertising as more people spend their time on the Internet and economic factors like the weakened U.S. housing market crimp marketing budgets.

A 31 percent increase in the company's quarterly dividend in March 2007, tax payments on recent asset sales and continued heavy capital spending through early 2008 will also challenge the company's ability to generate sufficient free cash flow to reduce its debt, Moody's said.

Debt to earnings before interest, taxes, depreciation and amortization had been previously expected to fall to 2.5 times in 2007, Moody's said.

[abb]

Monday Afternoon Good News!!

[abb]

[abb]

ping

[dashing doofus]

Excellent. I guess the Times wrote a bad story about Moody’s failure to detect the subprime problems on AAA rated bonds. ;-)

[scottdeus12]

“The New York Times is currently ranked “Baa1,”

In other news, Baal was the God that was worshipped in Ancient times.....children sacrafice...etc......

Boo frickin Hoo for the Times.

[sinanju]

Rated “Baal” is it? Well that about sums it up.

[GOPJ]

This isn't caused by the New York Times "giving the finger" to half their potential readers. Nope, that can't be it.

And Times advertisers don't need conservatives to buy their products...

so that's can't be it.

And the internet is just a bunch of guys in pajamas, so that's not it.>

We got ourselves a mystery here...

[Secret Agent Man]

Funny, I noticed the ‘Baa1-Baal’ coincidence too.

[khnyny]

economic factors like the weakened U.S. housing market crimp marketing budgets.

Exactly. Home builders, real estate developers, mortgage banks and realty companies are traditionally, heavy into print advertising. The downturn in housing is affecting the newspapers. What a shame.

[dighton]

A 31 percent increase in the company's quarterly dividend in March 2007 ...

I don’t get it, increasing the payout while business heads south.

[Lexington Green]

Tired of paying to be propagandized? Cancel your NYT.

[Tribune7]

The New York Times is currently ranked "Baa1,

The Bible and Moody's are in synch!!!!!

[digger48]

And they completely ignore the fact that a lot of folks don’t care for lies, manipulation of facts, treasonous leaks and publishing of National Security information, anti-Republican , anti-American editorials diguised as front-page news, and working hand-in-hand with the Socialist Democrats in their quest for power

[rfp1234]

[dirtboy]

The New York Times is currently ranked "Baa1,"

That's what happens when you publish nothing but "Bu11".

[SaxxonWoods]

I love the smell of the NYT burning in the morning.

Smells like...victory.

[Zuben Elgenubi]

The fagolas are just not procreating enough to improve the number of readers of the Slimes

.

[Doctor Raoul]

I always said Mo Dowd was a Moody....well you know.

[Doctor Raoul]

A 31 percent increase in the company's quarterly dividend in March 2007...

Who owns most of that stock?

Pinch isn't exactly Robbing Hood here is he?

[abb]

Pinch was hoping the dividend increase would prop up his stock and keep the hounds at bay. Actually he should have conserved the cash. The company will probably go cash flow negative within a few months.

[PEACE ENFORCER]

Hate to tell you....that dog is in big trouble......

[Maceman]

NOW negative?

[onevoter]

Meanwhile the New York Post keeps moving forward. This in a country where they keep telling us that the majority are Dem. The scary part is that it may actually be true - it is just that welfare recipients, felons, etc., don’t tend to read newspapers - let’s just hope they don’t vote much, either . . . .

[Mr. Lucky]

In order to keep its trust fund baby shareholders quiet, the New York Times had to raise it’s dividends to the point that it is essentially in a slow liquidation.

[Califreak]

[pacelvi]

“The New York Times is currently ranked “Baa1,” the third-lowest investment grade rating. “

What a devilish suggestion!

[Boston Blackie]

[thulldud]

...it is just that welfare recipients, felons, etc., don’t tend to read newspapers - let’s just hope they don’t vote much, either . . . .

No, they get somebody else to do it for them. Same way that people continue to vote after they're dead.

[bill1952]

Hmm. As far as I know, after reinvestment, expenditures, and procurements, all remaining monies have to be dispersed as dividends to the shareholders by law.

I’m surprised that thee is anything at all, but I see no note of what the dividend was before this one.

Were it small, and I’m guessing that it was, then any increase would look huge.
But I don’t invest in Junk bonds and such, so I really don’t know exactly what happened.

[onevoter]

Too bad for The New York Times that the same dead people who vote, don’t read newspapers . . . . every dead person I’ve heard of who votes goes Dem so they would probably LOVE the Times!

[Doctor Raoul]

What’s lower, the NYT’s rating or Maureen Dowd’s morals?

[Zuben Elgenubi]

I understand Senator Craig, R-Idaho, will soon be a routine contributor to the Slimes

[untrained skeptic]

Exactly. Home builders, real estate developers, mortgage banks and realty companies are traditionally, heavy into print advertising. The downturn in housing is affecting the newspapers. What a shame.

Yes, and the housing boom also provided an advertising windfall to the Times. Despite that they were doing bad when the housing market was booming, and now that boom has ended and things are looking even worse.

[RayChuang88]

Home builders, real estate developers, mortgage banks and realty companies are traditionally, heavy into print advertising.

Even worse news for the New York Times is that once the housing market bounces back, they won't be going back to newspapers--many real estate companies are heading to the Internet to put up real estate listings instead. On the Internet, not only can you put up a picture of the house, but you can show the map address, an aerial view of the house, and even have "walk arounds" inside the house.

[picard]

“When the water rises, all boats float.”

The NYT has been bashing the subprime, housing, and every other aspect of the booming economy relentlessly for years. And they stubbornly refuse to print any good news about Iraq or the economy unless it is prefaced by, “Although” and ends with “but things may not be as rosie as they appear”

Apparently when the water rises, instead of enjoying it, NYT has a policy to shoot holes in own boat and everyone they can reach and then yell “see we were right!” as they sink.

[6SJ7]

The NYTimes mascot, 'Baa1'.

[The Spirit Of Allegiance]

The New York Times is currently ranked “Baa1”

Curious how that rating looks exactly like our word for an ancient demonic idol of the Phoenicians—their god of the sun. BAAL.

But really, nothing to see here, move along. Please drop your worthless stock certificates from the newspaper of record of the cult of self in the litter containers as you pass by, thank you.

---

BAAL
http://www.biblegateway.com/topical/topical_resource.php?source=1&tid=530

[ArtyFO]

NYT makes a nice crab wrapper. Little Pinch can use it to paper the walls of his new orifice.

[TrueKnightGalahad]

Hmm. As far as I know, after reinvestment, expenditures, and procurements, all remaining monies have to be dispersed as dividends to the shareholders by law.

This is incorect; earnings also may be retained by the corporation.

[Political Junkie Too]

This isn't caused by the New York Times "giving the finger" to half their potential readers. Nope, that can't be it.

I think it's because their crossword puzzle is too hard, so people are going elsewhere for something to do on the train.

Maybe they'll blame it on the Sudoku craze. ;-)

-PJ

[Stallone]

Loved the Old North Church, and the rest of the Freedom Trail.

Stopped in Little Italy for a spectacular linguine & lobster dinner.

The worst thing about Boston is the politics.

[Boston Blackie]

I'm glad you enjoyed Boston...its a great city EXCEPT for the politics.

[bill1952]

Surely you are not saying that earnings may be indefinitely held by a public corporation?

[bill1952]

Guy, if you wrap seafood with it, you will never get that smell out of the fish.

[DesScorp]

“The New York Times is currently ranked “Baa1,””

I see I’m not the only one that saw that and read “Baal”, the ancient evil pagan god of Israel’s enemies. How fitting.

[TrueKnightGalahad]

Yup -- and don't call me Shirley! (Sorry, I live to use that line from "Airplane!") Seriously, corporations may retain earnings from year to year; those retained earnings are accounted for as shareholders' equity. I'm not going to write a treatise about it here -- but if you go to your library you will find much on the topic. Prepare to have your eyes glaze over. Also, you may be in for a shock, as you'll discover that a corporation generally has no obligation to pay any dividends at all, no matter what its income may be.

[frithguild]

[reagan_fanatic]

[SunkenCiv]

[nina0113]

Do you have the Anne Frank NYT picture too? I’ve been looking for that for a while.