Media, Entertainment Companies With Vulnerable Credit Outlooks, According to S&P

The continued spread of the novel coronavirus pandemic has already taken a massive toll on the bottom lines of media and entertainment companies. As companies continue to look for ways to stay afloat and survive the economic downturn, some have to worry about faltering credit ratings. As of March 26, the latest comprehensive analysis available, S&P Global has already taken more than 25 ratings actions on companies identified as being the most vulnerable within the media and entertainment industry, which also includes event organizers, live-events companies, travel-related companies and movie exhibitors. When accounting for cruise lines and other entertainment companies, S&P has taken some 73 credit actions globally. One analyst said that in this environment the analysts are updating their analysis on what seems like a day-to-day basis. Having a solid credit footing, especially now is important as it give companies a means to raise cash to help float their businesses during the shutdown. Also Read: Why Cash on Hand Is King for Major Hollywood Companies Hoping to Weather the Coronavirus Storm S&P has changed the credit outlook on the Walt Disney Co. from “stable” to “negative,” while maintaining an A credit rating (a AAA credit rating is considered “Prime,”...

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