Moody's Investors Service on Monday changed its outlook on the New York Times Co. from stale to negative, indicating growing pressure on the publisher's advertising from other media and a decline in the housing market.

The media company's debt is likely to be downgraded over the next 12 to 18 months, the investors service said.

The Times is currently rated "Baa1," the third-lowest investment grade ranking.

"The negative rating outlook results from increased pressure on the company's retail and classified advertising from cross media competition and the downturn in the housing market," according to a Moody's statement.

The New York Times is suffering from a recession of print advertising as more readers spend their time online, as well as economic factors such as the depressed U.S. house market, which crimps marketing budgets.

Moody's said a 31 percent increase in the company's quarterly dividend in March 2007, tax payments on recent asset sales and continued heavy capital spending throughout early next year will challenge the company on how to generate sufficient free cash flow to cut its debt.