Statement by Gannett on credit watch action by Standard & Poor’s

McLEAN, VA – Standard & Poor’s Ratings Services today placed Gannett’s long and short term credit ratings on credit watch, with negative implications.

Gannett has continued to fund itself in the commercial paper market despite current market disruptions over the past few weeks. As a prudent liquidity measure in light of the ongoing credit market dislocations, Gannett partially drew down on its committed revolving credit facilities sufficient funds to cover all of its commercial paper obligations outstanding. This action was taken prior to -- and was completely unrelated to -- Standard & Poor’s actions today.

Irrespective of any actions Standard & Poor’s may take in the future, Gannett continues to generate substantial cash flow and also has significant untapped availability under its $3.9 billion of committed revolving credit facilities, far in excess of our total commercial paper obligations.

“Our underlying fundamentals remain strong and we continue to be a solid investment grade company,” said Craig A. Dubow, chairman, president and chief executive officer.

Wow. Cash your paychecks as soon as you get them, because the credit crisis has come to GCI. The announcement by Standard & Poor’s Ratings Services placing Gannett’s debt on credit watch "with negative implications," means the ratings agency doesn't have confidence GCI can meet the revenue/expenditure goals it promised when it took out the loans. In practice, it means no more loans in this climate where only those with sterling credit can get loans. It also certainly means more layoffs and very soon, because corporate will want to get GCI on the right side of Wall Street regardless of the human costs it will bring. Watch out. On your paychecks, it also means corporate will have trouble getting short-term loans to make the payroll -- a normal way of doing business for most large companies. It is certainly an indication of how a corrupt and venal management is leading this corporation down a rathole. I would not be surprised to see heads roll at corporate over this. It is astonishing GCI would allow anything negative to be weighed against its debt at this point when the markets are in an uproar over companies that cannot pay off what they owe.

How could management allow GCI's credit ratings to be downgraded? The board of directors should be sued for malfeasance in office for failing to ensure that GCI's credit ratings aren't the best possible. I cannot recall this ever happening before.