Reuters is reporting this afternoon that parent company of WKYC, Gannett Co., has been downgraded to "junk status". ----- NEW YORK, March 2 (Reuters) - Standard & Poor's on Monday cut Gannett Co's (GCI.N) ratings to junk status, citing worsening prospects for ad spending at the largest U.S. newspaper chain. S&P also warned that some lenders could recover only a negligible amount of their investment if the company defaults. Gannett's rating had been in danger of slipping to junk since the publisher of USA Today posted a 36 percent decline in ad revenue in the fourth quarter. A downgrade to junk status can significantly increase a company's borrowing costs. Gannett's bonds fell significantly after the downgrade. Its 6.375 percent notes due in 2012 fell to about 62 cents on the dollar, down about 2.5 cents, according to MarketAxess. Ad spending is expected to decline further this year in both Gannett's newspaper and broadcasting businesses, S&...