Moody’s cuts Postmedia, notes

Moody's Investors Service said it downgraded Postmedia Network Inc.'s corporate family rating to Caa2 from Caa1, probability of default rating to Caa2-PD from Caa1-PD, first-lien notes rating to B3 from B2 and speculative grade liquidity rating to SGL-4 from SGL-3.

The outlook was changed to negative from stable.

"The downgrade of Postmedia's CFR and the outlook change to negative reflect the company's high leverage (adjusted Debt/EBITDA of 9.6x at LTM Q3/2017), weak liquidity, and continued decline in its revenue and EBITDA (including cash restructuring costs), which together leads to an unsustainable capital structure," Moody's assistant vice president Peter Adu said in a news release.

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