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The credit rating business, Moody’s changed the perspective of Televisa Group of positive to negative.
In a statement, Moody’s Ratings announced that it has changed the long-term debt outlook of Mexican media giant Grupo Televisa to negative from stable.
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This is because it “reflects our expectations that Televisa’s competitive position faces operational challenges” that could result in the possibility of losing its investment grade in the next 12 to 18 months.
According to Moody’s, the 7.6% drop in revenue and poor performance in the broadband segment were key factors in the assessment, adding to the negative trend of its Sky satellite television business.
Given this situation, the rating agency indicated that Televisa maintains its rating at “Baa3 – the lowest step in the investment grade category -” and that it should improve in the short term, since if it does not do so, it could face operational challenges that could “limit improvements in the near future.”
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“We believe this strategy should improve the company’s credit metrics in the near term; however, we expect leverage (gross debt/EBITDA, adjusted by Moody’s) to remain above 3.5x (2.3x on a net basis) for longer, which is high for the rating category. […]This, coupled with negative operating trends, does not compare favorably with the credit profile of other Baa3-rated peers,” the statement said.
CSAS
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2024-09-25 00:50:26