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Paramount Global Put On “Credit Watch Negative” By Ratings Agency S&P Due To “Weak” Cash Flow Trends
Paramount Global has been downgraded by credit ratings agency S&P to "credit watch negative" due to discouraging trends in its cash flow.
S&P had warned about tough sledding for Paramount in 2024, with one of its executives saying the company “has to show us a path” to profitability in streaming in order to see a credit ratings rebound. In a report Friday, S&P said Paramount’s free operating cash flow “remains weak due to the ongoing deterioration of the linear television ecosystem and the shift toward a lower margin direct-to-consumer (DTC) streaming model.” S&P noted in its report that it is introducing cash flow metrics into its assessments across the media sector, combining them with measurements of company debt.
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