S&P cuts its Tribune ratings to junk level

Reuters reports:

Standard & Poor's on Friday cut its ratings on Tribune Co. into junk territory and said it may cut them again, citing the media company's statement that it is exploring alternatives to increase value for shareholders.

Tribune, under rising investor pressure to sell divisions or go private, said after a board meeting on Thursday that it would consider strategic alternatives to create value with the support of its largest shareholder.

The statement did not elaborate on what the alternatives include but it came after several of Tribune's biggest shareholders urged the company to spin off its broadcasting division, find a buyer or have a leveraged buyout.

S&P had cut its ratings on Tribune in May, after the company announced a leveraged recapitalization with the purchase of about 25% of its stock, the rating agency said in a statement.

Those who worry about media concentration better get some other hobby.