McClatchy shares rise on S&P upgrade

* McClatchy shares climb almost 11 pct

* S&P upgraded McClatchy's corporate credit rating

NEW YORK, Dec 16 (Reuters) - Investors sent shares of McClatchy Co (MNI.N) up as much as 10.8 percent on Thursday, one day after Standard & Poor's raised its rating on the newspaper company.

The agency raised McClatchy's corporate credit rating to "B" from "B-" on moderating advertising revenue declines and an expected improvement in cash flow.

"In 2001, we believe revenue could decline at a low-to mid-single-digit percent rate due to moderating print ad revenue declines," Hal F. Diamond, a credit analyst with Standard & Poor's, wrote in the report.

The news made McClatchy one of the biggest percentage gain leaders on the New York Stock Exchange on Thursday.

McClatchy, publisher of the Sacramento Bee and the Miami Herald, said earlier this month that advertising revenue trends were improving in the fourth quarter. [ID:nN08150469].

Shares of McClatchy are up 8.0 percent at $4.99 in afternoon trade. Earlier they reached as high as $5.12.

(Reporting by Jennifer Saba, editing by Gerald E. McCormick)

((Jennifer.Saba@thomsonreuters.com; 1 646 223-6173; Reuters Messaging: jennifer.saba.reuters.com@reuters.com))

(Visit blogs.reuters.com/mediafile/ for more coverage at the Reuters MediaFile blog) Keywords: MCCLATCHY/

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