Moody's: WMG outlook developing

Moody's Investors Service said it changed WMG Holding Corp.'s outlook to developing from positive and affirmed its Ba3 corporate family rating.

The agency said the developing outlook reflects the current uncertainty regarding WMG's intention to bid on EMI Group plc as well as the worsening environment for the global recorded music business.

Moody's expects the developing outlook to remain until it is evident whether WMG will bid for EMI or a portion thereof. A cash offer for EMI or a large segment would likely result in a review for possible downgrade, the agency said. Alternatively, should it become apparent that EMI will be acquired by a different party, Moody's intends to re-evaluate WMG's outlook in light of worsening music industry fundamentals and the still acquisitive nature of the company.

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