Research Update: CMG Media Corp. Downgraded To 'CCC+' On Elevated Refinancing Risk; Outlook Negative

S&P Global Ratings expects CMG Media Corp.'s leverage to remain above 6x over the next few years given the macroeconomic and secular pressures facing linear TV. As the company faces upcoming maturities in 2026 and 2027, we are increasingly uncertain about CMG's ability to refinance at current leverage levels or having to do so at high rates that limits its ability to generate positive free operating cash flow (FOCF). We lowered our issuer credit rating on CMG to 'CCC+' from 'B-' and we removed all ratings from CreditWatch, where they were placed with negative implications on June 20, 2024. At the same time, we lowered our issue-level rating on the company's senior secured debt to 'CCC+' from 'B-'. Our '3'

...- S&P Global Ratings expects CMG Media Corp.'s leverage to remain above 6x over the next few years given the macroeconomic and secular pressures facing linear TV. - As the company faces upcoming maturities in 2026 and 2027, we are increasingly uncertain about CMG's ability to refinance at current leverage levels or having to do so at high rates that limits its ability to generate positive free operating cash flow (FOCF). - We lowered our issuer credit rating on CMG to '###+' from 'B-' and we removed all ratings from CreditWatch, where they were placed with negative implications on June 20, 2024. - At the same time, we lowered our issue-level rating on the company's senior secured debt to '###+' from 'B-'. Our '3' recovery rating on this debt is unchanged. - We also lowered our issue-level rating on its senior unsecured debt to '###-' from '###'. Our '6' recovery rating on this debt is unchanged. - The negative outlook reflects the potential for a lower rating if we envision a default within...

Research Update