Some mixed messages from debt rater S&P on the outlook for NYTCo (NYSE: NYT). First, the bad news: the firm downgraded the company’s debt rating to BBB-, which is one notch above “junk” status. The firm, reports Reuters, cited a worsening ad market, and it also warned that it may downgrade the company’s debt again over the next couple of years. But the good news: the firm does see online growth eating into print losses over the next couple of years, and it sees digital revenue at 15 percent of the total in 2009. For this past Q1, digital accounted for just 11 percent of total revenue.

Interesting response to the news: the cost of insuring the company’s debt actually slipped slightly, according to the report, perhaps suggesting that the market is already ahead of the curve on this one. In Q1, interest expenses came to $11.7 and total debt stands at $1.1 billion.