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Postmedia Downgraded to CCC+ by S&P on Looming Debt Maturities

  • Newspaper publisher has $246.3 million in debt maturing 2017
  • Declining revenues due to rise of digital media affecting cash

Postmedia Network Canada Corp., the country’s largest English daily newspaper publisher, had its credit rating cut on concerns that high interest costs and low cash flow will leave the company unable to service its debt.

Standard & Poor’s on Monday reduced Postmedia to CCC+, five levels above default, from B- on the expectation that its estimated cash flow will be insufficient to service C$329 million ($246.3 million) in debt maturing in August 2017 and $269 million maturing in July 2018. Postmedia estimates C$82.0 million in free cash flow for that year, according to data compiled by Bloomberg.