Highly leveraged media companies very vulnerable, says Moody's

TORONTO – While saying the business environment and financial performance of companies across Canada are likely to be adversely affected by the ongoing recession and the relative scarcity of financing, advertising-sensitive companies in the newspaper and television broadcasting sectors are likely to be most affected, according to Moody’s Investors Service. "The recession will adversely affect advertising revenues and EBITDA will decline," said Moody's vice-president - senior credit officer Bill Wolfe, "and this temporal matter may have lasting implications for these two struggling sectors." While telecommunications and cable companies are unlikely to experience revenue or cash flow declines and their growth...