Tuesday, December 26, 2006

Standard and Poors Downgrades NY Times' Debt 

That's a bad sign when times are good. We are NOT in an advertising recession right now (though I sense a little more caution among advertisers in my little corner of the world).

It's not unusual to see this happen when market conditions deteriorate. But to have your debt slashed to just barely investment grade when the economy is strong? That's ugly.

Advertising is an extremely cyclical business. If they're a BBB debt when times are good, they're B paper when times are bad. Maybe C.

Splash, out


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