Fitch Downgrades Paramount Ratings to Junk Status
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
Should l Buy PSKY?
Source: seekingalpha
- Rating Downgrade: Fitch has downgraded Paramount Skydance's corporate and long-term borrower ratings from BBB- to BB+, indicating a fall from investment grade to junk status, which reflects competitive pressures in the media sector and ongoing free cash flow challenges.
- Acquisition Impact: Paramount has agreed to acquire Warner Bros. Discovery for $31 per share, totaling $110 billion, with the combined entity expected to carry approximately $79 billion in net debt, potentially leading to significantly elevated financial leverage.
- Debt Rating Adjustment: Fitch lowered Paramount's senior unsecured debt rating from BBB- to BB+ and assigned a Recovery Rating of RR4, indicating uncertainty regarding future financial policies and capital structure post-acquisition.
- Negative Watch: Fitch has placed all ratings on negative watch, indicating that they will remain unchanged until final transaction terms, financing mix, and post-close deleveraging priorities are clarified, reflecting potential credit risks.
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Analyst Views on PSKY
Wall Street analysts forecast PSKY stock price to rise
15 Analyst Rating
1 Buy
7 Hold
7 Sell
Moderate Sell
Current: 9.250
Low
8.00
Averages
14.08
High
19.00
Current: 9.250
Low
8.00
Averages
14.08
High
19.00
About PSKY
Paramount Skydance Corp, formerly New Pluto Global, Inc., is a holding company. It operates through its wholly owned subsidiaries, Paramount Global (Paramount) and Skydance Media, LLC (Skydance). Paramount is a global media, streaming and entertainment company that creates premium content and experiences for audiences worldwide. Its consumer brands include CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+ and Pluto TV. In addition to offering streaming services and digital video products, it also provides production, distribution and advertising solutions. Skydance is a diversified media company focused on creating event-level entertainment for global audiences. Skydance develops, finances and produces live-action and animated films, television shows, sports content and interactive games worldwide. Skydance has also produced 31 seasons of live-action and animated television content across 16 series and supplies content across a range of platforms.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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