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MediaNews may face trouble with banks

Credit rating agency Standard & Poor’s says it is worried that MediaNews Group may soon violate the terms of its loans because of declining profits. One solution, S&P says, is to bring on a partner.

S&P has put MediaNews on its CreditWatch status, a move with negative implications that may reduce the privately held company’s ability to borrow more money.

MediaNews, headed by Dean Singleton (pictured), controls most of the Bay Area’s daily papers including the Mercury News, Contra Costa Times, Oakland Tribune and Palo Alto Daily News. In January, S&P lowered MediaNews Group’s credit rating from “B” to “BB-minus.”

S&P analyst Emile Courtney explained the negative listing this way:

Here’s a link to the Denver Business Journal’s coverage of this announcement and a report in Denver’s Rocky Mountain News.

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