The television group owned by Belo Corporation is merging into Gannett. Moody’s Investors Service has affirmed its package of ratings, but has essentially made the company’s outlook a question mark.
The company’s.Corporate Family Rating remains Ba2; likewise, its Probability of Default Rating holds steady at Ba2-PD.
But its outlook is going from Stable to Developing.
Moody’s Carl Salas explained, “The developing outlook reflects the need to assess the final structure of the merged entities, the impact of Belo’s debt instruments being assumed in the stock purchase including legal claims, and the absence of guarantees from Gannett. Moody’s will also evaluate the level of financial disclosure available to maintain ratings on Belo following the acquisition. Belo’s Ba2 corporate family rating reflects the company’s consistent leading market positions, reliance on cyclical advertising spending for roughly 80% of its revenues, and good liquidity.”
