Via Romenesko, Moody’s has downgraded the NYT’s debt rating to “Baa1″ — the third-lowest investment grade ranking:
NEW YORK, May 25 (Reuters) – Moody’s Investors Service on Thursday cut its debt rating on the New York Times Co., saying leverage has risen and will not likely fall much until the publisher completes its new headquarters in mid-2007. […]
The company, which publishes The New York Times, International Herald Tribune and the Boston Globe, said last month, its first-quarter profit fell 69 percent from a year earlier when it took a large gain, as higher newsprint costs and weak results from the Boston Globe outweighed strong Internet revenue.
The New York Times’ operating margins lag those of its peers, which means that cash flow available for debt reduction is weak, the rating agency said. Moody’s cut the Times’ senior unsecured long-term debt rating by two notches to “Baa1,” the third-lowest investment grade ranking, from “A2.” It also cut the commercial paper ratings to “Prime-2″ from “Prime 1.”
Another accomplishment for publisher Arthur “Pinch” Sulzberger, Jr.