Moody's Investors Service put some of McClatchy Co.'s ratings on review for possible downgrade Friday, saying the company's cash flow has become increasingly squeezed by advertising sales declines.

On Wednesday McClatchy, one of the nation's largest newspaper publishers, reported January ad revenue fell nearly 16 percent year over year to $145.5 million, with national and classified advertising both posting double-digit declines.

Publishers are implementing cost controls efforts and ramping up Web operations in an attempt to help offset print declines.

Moody's said McClatchy's "Ba2", or junk, corporate family rating, "Ba2" probability of default rating and associated debt ratings are under review.
The agency also cut McClatchy's speculative-grade liquidity rating to "SGL-4" from "SGL-2."

Or in everyday terms - the credit rating of this company is now below junk status and the credit markets view the liquidity (the availability of financing is in highly uncertain) of the corporation to be at the lowest level.

Here is Pennywise's financial tip for the day:

Only pay your subscription to the Beaufort Gazette on a weekly basis otherwise you may not collect on that investment.