Fitch rates CAA, loans B+

Fitch Ratings has assigned a first-time B+ long-term issuer default rating to CAA Holdings, LLC and Creative Artists Agency, LLC (CAA). Fitch also assigned B+/RR4 ratings to CAA's senior secured facilities. The outlook is stable.

“The rating reflects CAA's leverage metrics. Pro forma for the proposed $125 million incremental term loan, Fitch calculated leverage was 6.3x as of Sept. 30, 2023. Fitch expects CAA to reduce leverage to below 5x by September 2024 through FCF-driven debt reduction. The rating is underpinned by CAA's dominant industry position and diversified revenue base,” the agency said in a press release.

Fitch said it forecasts CAA's revenues will grow in the mid-to high-single digits over the horizon as CAA benefits from an expected recovery in content production in FY24, ongoing growth in music and comedy touring and live events and positive transformation of sports' commercial revenue model.

The outlook reflects an expectation of a robust recovery in the content production market in FYE Sept. 30, 2024, after the resolution of strikes in 2023, supported by favorable trends in CAA's other core end markets, Fitch 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.