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Stock impact report

Paramount credit downgraded to ‘junk' status over debt worries [Los Angeles Times (CA)]

Paramount Skydance Corporation - Class B (PSKY) 
Two major ratings agencies have downgraded Paramount's credit based on concerns about the debt the David Ellison company will have to shoulder — at least $79 billion — once it absorbs the larger Warner Bros. Discovery, bringing CNN, HBO, TBS and Cartoon Network into the Paramount fold. Fitch Ratings said Monday that it placed Paramount on its “negative” ratings watch, and downgraded its credit to BB+ from BBB-, which puts the company's credit into “junk” territory. Fitch said it took action due to “uncertainty” surrounding Paramount's $110-billion deal for Warner Bros. Discovery, which the boards of both companies approved on Friday. S&P Global Ratings took similar action. To finance the Warner takeover Ellison's billionaire father, Larry Ellison , has agreed to guarantee the $45.7 billion in equity needed. Bank of America, Citibank and Apollo Global have agreed to provide Paramount with more than $54 billion in debt financing. “Potential credit risks include the prospective Show less Read more
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