Fitch cuts Tribune rating; default 'real' possibility

Crain's Chicago Business reports:

Fitch Ratings on Friday cut the issuer default rating on Tribune Co. stock further into "junk" status and said it may lower the media company's rating again because of accelerating declines in newspaper advertising revenue.

Fitch sliced Tribune's rating two notches to "CCC" from "B-." It gave the stock a "negative" outlook, which means a decrease in the company's ratings is likely, usually at some point in the next eight to 12 months.

The ratings agency said a "CCC" rating means "default is a real possibility, and the capacity to meet financial commitments is vulnerable to deterioration in business and economic conditions."