DBRS Publishes Updated Printing and Newspaper Methodologies with Rating Impact

DBRS is updating the following two corporate methodologies:

– Rating the Printing Industry
– Rating the Newspaper and Magazine Publishing Industry

Both methodologies included one material change: the lowering of the Industry Business Risk Rating (BRR). For each of the two industries, the BRR was reduced to the BB (high)/BB range from BB (high). In each case, the rationale for the change was based on DBRS’ view that the highly competitive industries are being increasingly affected by the structural transition toward digital-based mediums. The structural trend is applying pressure to traditional circulation, advertising and printing revenue. Although digital mediums offer opportunities for growth, the revenue models remain largely unproven. Other changes in the methodologies relate to minor improvements for clarity and content, including additional detail within the area of company-specific business risks.

As a result of the material changes to these methodologies, DBRS has concurrently taken two rating actions. Specifically, and as detailed in separate press releases, DBRS has placed all ratings for Torstar Corporation and Transcontinental Inc. Under Review with Negative Implications. There were no other rating changes or rating actions caused by the update of the two methodologies.

DBRS criteria and methodologies are publicly available on its website www.dbrs.com under Methodologies.