Warner Bros Discovery's credit rating downgraded to junk post-split announcement

From Yahoo Finance: 2025-06-11 13:15:00

Fitch Ratings downgraded Warner Bros Discovery to junk status post-split announcement, citing smaller size, less diversification, and high leverage. Depending on final capital structure, multi-notch downgrade possible.

Warner Bros Discovery to split into two companies: one with Warner Bros Pictures, DC Studios, HBO Max; other with legacy cable channels like CNN, TNT. Split aims to help manage $37 billion debt from 2022 merger, expected to close mid-2026.

Analysts expect split-up to impact debt holders, with potential multi-notch downgrade. Warner Bros Discovery’s post-transaction outlook includes smaller size, less diversification, and high leverage in declining industry. Split aims to better manage $37 billion debt from 2022 merger.



Read more at Yahoo Finance: Warner Bros’ credit rating downgraded to junk by Fitch on split-up