Stormy weather ahead as the NYT undergoes a review:
SAN FRANCISCO (MarketWatch) — Moody’s Investors Service on Friday placed New York Times Co.’s A2 senior unsecured long term debt, and P-1 commercial paper ratings on review for possible downgrade. The agency said the review is prompted by Moody’s growing concerns about the media company’s high financial leverage, deteriorating operating margins and weak free cash flow available for debt reduction, combined with concerns over intensifying cross media competition, including the Internet, and growing event risk in the newspaper sector.
I wouldn’t be too worried — I’m sure the NYT’s strategy of charging people to read Paul Krugman (I wonder what he’ll write today!) will start paying off any day now…