CBS Cuts Dividend
April 8, 2009 at 5:22 AM (PT)
CBS CORPORATION has cut its quarterly dividend from 27 cents per share to 5 cents per share, payable JULY 1st to shareholders of record as of JUNE 10th.
The cut comes as STANDARD AND POOR'S puts the company's stock on watch for a downgrade after changing its outlook on CBS credit ratings to negative in FEBRUARY. A drop by one notch to BBB- is most likely, but a two-notch drop into junk status, while a "low probability," is possible if the economic recovery is at a lower level than hoped for 2010. S&P's move comes from concerns about declines in ad revenues and trends in media spending.