S&P downgrades rating on Reader’s Digest debt
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- March
- 17
Standard & Poor’s Ratings Services lowered its ratings on Reader’s Digest Association Inc.’s corporate credit rating to “B-†from “B,†and revised its outlook on the venerable publisher to stable from negative, the bond-rating company said yesterday.
Standard & Poor’s cited the Chappaqua-based publisher’s higher debt levels, lower earnings and negative cash flow as reasons for the downgrade.
S&P also expressed concern regarding management’s ability to stem business declines at its school and educational services operations, complete restructuring initiatives and resume profitability growth over the near term.
S&P noted Reader’s Digest total debt as of Dec. 31 was $2.08 billion.
This entry was posted
on Monday, March 17th, 2008 at 3:53 pm by David Schepp.
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