TEXT-S&P: shifting reading habits affect Canadian newspapers

Dec 11 - Ongoing declines in print advertising and circulation revenues
continue to hound Canadian newspaper publishers said a report published today by
Standard & Poor's Ratings Services.

And while the Canadian newspaper business is declining at a slower pace than
in the U.S., mainly due to a better economy that includes lower unemployment,
a shift in consumers' reading habits to online from print is contributing to
the pressures.

"This shift in reading habits means publishers continue to lose market share
to digital advertising," said Standard & Poor's credit analyst Lori Harris.
"Furthermore, the weak economy has exacerbated the effect on the industry's
print advertising spending," Ms. Harris added.

In its commentary,"The Print Is Getting Smaller For Two Canadian
Speculative-Grade Newspaper Publishers," Standard & Poor's outlines the effect
these changes are having on two newspaper publishers Postmedia Network Inc.
and Black Press Ltd.

The report is available to subscribers of RatingsDirect on the Global Credit
Portal at www.globalcreditportal.com. If you are not a RatingsDirect
subscriber, you may purchase a copy of the report by calling (1) 212-438-7280
or sending an e-mail to research_request@standardandpoors.com. Ratings
information can also be found on Standard & Poor's public Web site by using
the Ratings search box located in the left column at www.standardandpoors.com.