Moody's Investors Service Friday downgraded the senior unsecured rating for the New York Times Co. to non-investment grade, due to concerns over ad revenue declines, The Associated Press reported.

Moody's reduced the rating from "Baa3" to "Ba3," a non-investment, or "junk" grade. It also downgraded the commercial paper rating to "Not Prime" from "Prime-3," and the corporate family rating to "Ba3."

The rating outlook is "Negative," according to the AP.

Moody's said it expects the continuous newspaper ad sales slump will have a "significant downward pressure" on the publisher's earnings before interest, taxes, depreciation and amortization.

"The earnings decline along with a significant increase in the underfunded pension liability will weaken credit metrics considerably," the agency said.

The "Ba3" rating shows the NYTimes' "significant global news and information infrastructure that supports high quality content, strong brands, and the company's position as a leader in prioritizing the national daily news agenda," Moody's added.

The content, which appeals to a large and affluent target base, is "attractive to advertisers at premium ad rates," in both print and online, according to Moody's. It can bring in higher percentage of subscription revenue compared to its peers, according to the AP article posted on Yahoo News.