Fitch rates DreamWorks B+

Fitch Ratings said it assigned a first-time issuer default rating of B+ to DreamWorks Animation SKG, Inc.

The outlook is positive.

The company also has a BB+ rating with recovery rating of RR1 on its senior secured credit facility and a B+ rating with recovery rating of RR4 on its senior unsecured notes.

The positive outlook reflects the company’s ability to execute a plan to stabilize the film segment, Fitch said, as well as the expected operational profile improvement resulting from its diversification efforts.

The film segment will benefit from Jeffrey Katzenberg's return to a more active role in film production and from the revised annual film output mix, the agency said.

The ratings also consider the underperformance of releases since 2012, proving that DreamWorks was not immune to the industry's volatility, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.