The Future of Print

More Upbeat News: Moody’s Removes Negative Outlook on Newspapers

Posted in Boom by futureofprint on April 19, 2010

CHICAGO Moody’s Investors Service — the big credit agency firm that over the past 18 months cut its ratings of nearly all newspaper publisher to junk levels — said Friday it had changed its sector outlook for U.S. newspapers to stable, from negative.

Moody’s said it expects newspaper advertising to recover well by the start of 2011, but cautioned that it still believes the industry faces long-term problems that might result in another negative outlook. And ratings upgrades for individual companies are not a given, the firm said.

“The change to a stable outlook reflects Moody’s expectation that acyclical recovery in advertising spending will moderate newspaper revenue declines as 2010 progresses and lead to a more stable revenue environment in 2011,” senior analyst John E. Puchallawrote in a note to investors. “Moody’s anticipates that newspaper advertising revenue will decline in an 5% to 10% range in 2010, but that revenue should be closer to flat toward the end of the year and in a -3% to +2% range in 2011.”

via More Upbeat News: Moody’s Removes Negative Outlook on Newspapers.


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