Fitch Affirms and Withdraws Belo's Ratings

Fitch Ratings has affirmed the Issuer Default Rating (IDR) of Belo Corporation (Belo) at 'BB', following the completion of Gannett Co. Inc.'s (Gannett) planned acquisition of Belo. Fitch also assigns a Positive Outlook; the ratings were previously on Rating Watch Positive. Following the rating affirmation, Fitch has withdrawn Belo's IDR and all issue ratings. The withdrawal of the ratings follows the reorganization of Belo (for reasons other than financial distress). A full list of rating actions appears at the end of this release.

On Dec. 23, 2013, Gannett completed the acquisition of Belo. Gannett paid $1.5 billion in cash for Belo's equity and assumed Belo's $715 million in senior unsecured notes. The ratings and Positive Outlook reflected the combined credit profile which will benefit the bondholders of Belo's notes. Fitch estimates Gannett/Belo's consolidated pro forma gross unadjusted leverage of 2.8x as of Sept. 30, 2013 (pro forma for Gannett's merger financing notes, consisting of $600 million notes due 2019 and $650 million notes due 2023 issued in October 2013). Gannett stated its intention to reduce levels of debt following the acquisition; however, Gannett has not stated a leverage target or an absolute debt balance target. The Positive Outlook reflected the potential for a one-notch IDR upgrade, which may have been supported by sustained leverage in the mid to low 2x in odd years (recognizing that leverage would be lower in even years).

Fitch has affirmed the following ratings:

--IDR at 'BB';

--Guaranteed senior unsecured notes at 'BB+';

--Non-guaranteed senior unsecured notes/bonds at 'BB'.

The rating was removed from Rating Watch Positive and assigned a Positive Outlook.

All ratings have been withdrawn.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology' (Aug. 5, 2013).

Applicable Criteria and Related Research:

Corporate Rating Methodology: Including Short-Term Ratings and Parent and Subsidiary Linkage

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715139

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=813351

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Fitch Ratings
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