"We are concerned that the company could have difficulty complying with covenants if declines in publishing revenue do not reverse," Standard & Poor's credit analyst Jeanne Mathewson said in a statement.
Charlie McCurdy, CEO of Canon Communications, told BtoB, "Canon remains in compliance on its credit agreements, and we expect to remain in compliance." He pointed out that Canon generates only 30% of its revenue from print advertising, the hardest hit sector of b-to-b media. About 55% of Canon's revenue is derived from trade shows and another 15% from digital and data products.
McCurdy also said the medical device sector, which is Canon's main market, has remained stronger than many other b-to-b sectors.