Paramount Will Probably Get Cut to Junk Again, CreditSights Says
- Moody’s will likely downgrade after SkyDance talks end
- Dismal cash flow is weighing on the company’s credit profile
The Paramount Studios in Los Angeles.
Photographer: Eric Thayer/BloombergThis article is for subscribers only.
Paramount Global could get cut by Moody’s Ratings to junk by the end of the year, after negotiations to potentially sell the company to Skydance Media fell through, research firm CreditSights said in a note.
Skydance had planned to pay down some of Paramount’s debt, making a potential deal a positive for bondholders. At least some of the remaining potential buyers for the company could instead boost debt levels, said CreditSights, which downgraded its ratings on the company’s bonds to “underperform” from “market perform.”