Fairfax considers bond buyback

Fairfax Media Ltd is considering buying back up to $A200 million of its bonds, helping to reduce the newspaper publisher's interest expenses following last week's credit rating downgrade.

Fairfax Media Group Finance Pty Ltd, a subsidiary, will open an offer process on Thursday to buy back some or all of the fixed-rate Australian dollar medium term notes due in June 2011.

The process is expected to close on Friday, Sydney-based Fairfax said in a statement on Thursday.

Fairfax said it was still to decide how much of the notes it would buy back, with those not acquired remaining subject to existing conditions.

Westpac Banking Corporation is managing the buy back.

Last week, ratings agency Standard & Poor's downgraded Fairfax's credit rating to BB-plus from BBB-minus because of the deterioration in the company's advertising revenue.

- AAP