Moody’s is reviewing whether to downgrade Paramount Global’s credit ratings to junk status, and it’s not just the recent agreement to merge with Skydance Media that’s driving the assessment.
“The review for downgrade is prompted by the ongoing secular pressures on the company’s television networks and the slow pivot to reach direct-to-consumer (DTC) streaming scale and Paramount’s announced agreement to merge with a smaller scale independent film and tv studio in Skydance,” the firm said in a statement on Tuesday.
Moody’s ratings action will be dependent on its review of the following:
- Strategic plans for shoring up the company, particularly as it relates to transitioning from the declining linear business to creating a profitable streaming service at scale.
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