McCarthy disappointed at S&P rating

FAIRFAX boss Brian McCarthy this morning expressed disappointment at a credit downgrade by Standard & Poor’s.

The company now rates Fairfax Media as a stable stock at BB+.

Earlier this week, Fairfax forecast that it would make a full year profit of A$600 million, following a half-year operational profit of A$370 million.

Mr McCarthy, the chief executive of Fairfax, said: “We are confident that our diversified market positions, strong balance sheet and operational focus will allow us to weather the current economic conditions and to take advantage of any upturn when it occurs.

“The company remains comfortably within its various financial covenants.”

The impact of the S&P rating increases some fiscal charges for Fairfax.

Australian Associated Press reported the impact on increased interest charges would be in the vicinity of A$10 million.

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