S&P: GateHouse on watch

Standard & Poor's said it placed its ratings on GateHouse Media Operating Inc., including the B+ corporate credit rating, on CreditWatch with negative implications.

The CreditWatch listing reflects the company's announcement that it has signed a definitive asset purchase agreement to acquire four daily newspapers from Gannett Co. Inc. for a purchase price of $410 million, the agency said.

S&P noted that this acquisition follows GateHouse's purchase of nine publications from The Copley Press for a net price of $380 million.

In resolving the CreditWatch listing, the agency said it will evaluate the company's financing strategies and review management's operating strategy and financial policy.

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