Moody's eyes Tegna for downgrade

Moody's Investors Service said it placed Tegna Inc.'s Ba3 corporate family rating, Ba2-PD probability of default rating and the Ba3 ratings on the company's senior unsecured bank credit facility and senior unsecured notes on review for downgrade. The SGL-1 speculative grade liquidity rating remains unchanged.

Standard General LP plans to acquire Tegna for about $8.6 billion, including the assumption of debt. The transaction, which prompted the review, is expected to complete in the second half of 2022, subject to regulatory approvals and customary closing conditions, the agency said.

“While details relating to the financing of this transaction have not been disclosed, Tegna's debt burden stands to rise meaningfully as a result of the buyout. The potential for a more aggressive financial policy is a key governance risk. If all the rated debt is repaid, all of Tegna's ratings may be withdrawn at closing,” Moody’s said in a press release.

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