Among public U.S. newspaper publishing companies
trading on NYSE or Nasdaq, Gannett had the highest one-year market signal
probability of default, at 38.2% as of market close May 26, according to an S&P Global analysis.
While
Gannett's one-year market signal probability of default score has fallen from
an April 7 high of 59.9%, it is up from early March, when it was in the
low-to-mid 20% area.
“Newspaper
publishers continue to face elevated levels of risk,” said the report.
The
one-year market signal probability of default scores for a number of major
publicly traded newspaper publishers remain up as compared to pre-pandemic
levels, according to the analysis by S&P Global Market Intelligence using
its new Marketplace database. The scores take into consideration share price
volatility, geography and industry-related risks.
Not on from
the list of analyzed publishers is McClatchy, which filed for bankruptcy
earlier in spring and which is now trading on the OTC Pink marketplace.
To boost
liquidity, Gannett has put in place cost-saving measures totaling $100 million
to $125 million, cut capital expenditures by 20% for the rest of the year and
suspended its quarterly dividend, S&P Global points out. Gannett is relying
on the CARES Act to push off a number of payments until 2021 and 2022
interest-free.
Gannett has
debt from its merger with GateHouse Media parent New Media Investment Group.
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