S&P snips Mediaocean

S&P said it lowered its rating on OceanKey (U.S.) II Corp. (Mediaocean and Flashtalking) to B- from B.

“The downgrade reflects our expectation that Mediaocean's FOCF to debt will remain below 5% through 2024 due to its slower expansion and higher interest expense, despite the cost actions it implemented over the past year to improve its cost structure. It also reflects the company's weaker-than-expected growth across its business segments, particularly in its social media advertising-focused segment, which faced elevated churn over the past year and has underperformed expectations since it was acquired three years ago,” S&P said in a statement.

The agency said it forecasts the company’s revenue will retreat 2%-3% in 2023 on persisting weakness in digital and social media platforms, Flashtalking and 4C.

The outlook is stable.

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