Sunday, June 07, 2020

S&P Global: Gannett has highest market signal probability of default


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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