| Abstract: | The ratings on Victoria, B.C.-based newspaper publisher Black Press Ltd. reflect what Standard&Poor's Ratings Services considers the company's weak financial risk profile, including a decline in profitability in the six months ended Aug. 31, 2009, limited liquidity, financial covenant concerns, and high debt leverage. Furthermore, we believe the company's performance in fiscal 2010 (ending Feb. 28) is likely to remain weak because of the expectation of lower advertising revenue. Partially offsetting these factors, in our opinion, is the company's solid market position within several of its regions. Black Press has followed a clustering strategy with its portfolio of newspapers. Western Canada is the company's core geographic market, generating well over half of its revenue, with Ohio and Washington
|
