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Credit Agencies Warn Declining Newspaper Revenue Threaten Debt Agreements, Or In Layman Terms, Who Was Expecting An 18% Downturn?
Philip M. Stone March 25, 2008
Standard and Poors put it this way about Dean Singleton’s Media News: “We are concerned that lower EDITDA may lead to a violation of the leverage covenant in its bank agreement over the near term.” Or as Sam Zell simply explained for why Tribune may now consider selling newspaper properties, “We started with the assumption that print would be down two or three per cent this year, not 18%.”

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