Moody's pares Paramount Global

Moody's Investors Service said it downgraded Paramount Global's ratings, including its senior unsecured debt ratings to Baa3 from Baa2 and its junior subordinate debt ratings to Ba1 from Baa3.

The downgrades conclude the review for downgrade started on Aug. 24. The outlook was changed to negative.

“The downgrade and negative outlook reflect Paramount's high financial leverage which was about 6x (including Moody's adjustments) as of the LTM period June 30, 2023, and Moody's expectation that despite improving profitability, financial leverage will remain above 4x by the end of 2025. The high leverage reflects the combined effect of investing in direct-to-consumer (DTC) streaming resulting in startup losses, and secular pressure on the company's linear television operations,” the agency said in a press release.

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