Moody's rates Prisa B2

Moody's Investors Service said it assigned a first-time B2 corporate family rating to Promotora de Informaciones, SA (Prisa).

The outlook is stable.

The B2 rating reflects Prisa's leading market positions in education in Spain and Latin America, the resilient performance of the education business through the economic cycle and the company's significant reduction in leverage over recent years after the capital increase in 2018, Moody's said.

The ratings also consider Prisa's large exposure to emerging markets, which results in significant foreign-exchange risks and a currency mismatch between the company's cash flow and debt profile, the agency said.

The company has a significant exposure to advertising revenue, which could weaken its business profile, given its cyclical nature and vulnerability to digital disruption over the long-term, Moody's said.

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