Moody's May Cut NYT Rating

Cites Internet "event risk:"

Moody's Investors Service said Friday it may cut its rating of the New York Times Co.'s debt because of the company's weak cash flow, high financial leverage, and declining margins.

If that wasn't enough, Moody's said it is concerned about growing media competition, including the Internet, and what it calls ''event risk'' in the newspaper sector.

...

The New York Times Co.'s share buybacks over the last four years, debt-financed acquisition of About.com, and capital expenditures for its move into new headquarters ''leaves the company with a significant debt burden, heightened adjusted leverage, resulting in diminished financial flexibility,'' Moody's said.

And yet publisher Arthur Sulzberger, Jr., The Nepot Despot, just got a $1.6 million bonus.

If he bankrupts the company, they'll give him Bolivia.

posted by Ace at 04:50 PM

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