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Paramount Global Deal With Skydance ‘May Not Be Sufficient to Stabilize the Credit Profile,’ Moody’s Says
Moody's warned it may downgrade Paramount's debt rating to junk status, saying the Skydance deal may not 'stabilize the credit profile.'
Skydance Media this week clinched a deal to merge with Paramount Global, and execs outlined a plan to cut costs and boost the combined company’s profitability in the years ahead. In a note Tuesday, Moody’s placed Paramount’s debt rating on review for a downgrade, citing “the ongoing secular pressures on the company’s television networks and the slow pivot to reach direct-to-consumer (DTC) streaming scale,” along with the announcement of Skydance-Paramount pact. “But without much more avid [intellectual property] such as more evergreen franchises to build on or heavier investment by Paramount, we believe that the company may remain competitively disadvantaged.
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