S&P: Lions Gate view to negative

Standard & Poor's said it revised its outlook on Lions Gate Entertainment Corp. and its subsidiary, Lions Gate Entertainment Inc., to negative from stable. The agency also said it affirmed its B- corporate credit rating.

The outlook change is in response to news of an unsolicited tender offer from Carl Icahn to acquire up to 13.2 million of Lions Gate's common shares, S&P said.

The ratings reflect the company's high debt leverage and negative discretionary cash flow, volatile EBITDA, limited liquidity and track record of growth through acquisition, Fitch said.

Minimally offsetting these factors are the company's position as an important U.S. film producer, its film and TV library of about 12,000 titles and some degree of business diversification provided by its TV production operations and fledgling media networks investments, the agency said.

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