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AMI RATING CUT: Standard & Poor’s on Tuesday lowered its rating on American Media Inc’s 8.875 percent senior subordinated notes due in 2011 to “D” from “CC” since the company failed to make its Jan. 15 interest payment on those notes. In its downgrade report, credit analysts at S&P noted that AMI has proposed a deal to exchange its 10.25 percent and 8.875 percent subordinated notes for new notes at over a 45 percent discount to par value, pushing maturities to 2013. “We are concerned that operating performance may deteriorate further over the near term because of the weak economy,” the credit analysts said. Last week, AMI reported a two percent decrease in revenue, due to softness in advertising. — Amy Wicks
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