The new newspaperless Tribune thinks its stock is underpriced, and it's taking advantage of the bargain by repurchasing a hefty chunk. Moody's Investors Service took a look at the project.
The bottom line is that there is no immediate impact on the company's ratings. It will retain its Corporate Family Rating of Ba3 for the time being.
Tribune is planning to buy back as much as $400M. Moody's says that even if it does, it will have plenty of cash on hand.
It is currently dealing with 5.3x in estimated leverage, which Moody's considers to be on the weak end of Ba3, it has earned a stable outlook based on Moody's belief that the company will be taking steps to bring its debt down.
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