The 'A' long-term corporate credit rating on the E. W. Scripps Co. (Scripps) remains on CreditWatch, where it was placed with negative implications on Oct. 16, 2007, following the company's announcement that it plans to separate into two publicly traded companies. After the separation, the remaining E.W. Scripps entity will consist of the newspaper, broadcast TV, and licensing segments, while the cable network and interactive media segments will be spun off into a new company, Scripps Networks Interactive. The CreditWatch listing reflects our concern that the transaction will eliminate the company's high-margin principal growth driver and increase its exposure to the declining business fundamentals of newspaper publishing. In our review, we will assess E.W. Scripps' diminished business diversification, long-term earnings
