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.