S&P Analyst Sees Paramount Rating as Strained After Warner Deal

Paramount Skydance Corp.’s $111 billion bid for Warner Bros. Discovery Inc. will strain its credit rating, an S&P Global Ratings analyst said, even if the combined company could ultimately cut its debt levels over time.

S&P Global Ratings has a BB+ rating for Paramount Skydance, the highest junk level. The entertainment company this week clinched a deal for Warner Bros. Discovery, outmaneuvering Netflix Inc. after a months-long battle.