Research Update: Corus Entertainment Inc. Outlook Revised To Stable From Negative On Lower Leverage Expectations; ?BB? Rating Affirmed

We anticipate economic recovery in fiscal 2021, which includes increased consumer mobility and advertising, will support Canada-based diversified media and content company Corus Entertainment Inc.'s topline and EBITDA performance. In addition, management's stated plan to use discretionary cash flow to reduce debt will lead leverage measures to improve to about 3x compared with our previous expectation of about 4x for fiscal 2021. Therefore, on Jan. 28, 2021, S&P Global Ratings revised its outlook on Corus to stable from negative. At the same time, we affirmed our 'BB' long-term issuer credit rating on the company and our 'BB+' issue-level rating on Corus' senior secured debt. The '2' recovery rating on the debt is unchanged. The stable outlook reflects our view that

...- We anticipate economic recovery in fiscal 2021, which includes increased consumer mobility and advertising, will support Canada-based diversified media and content company Corus Entertainment Inc.'s topline and EBITDA performance. - In addition, management's stated plan to use discretionary cash flow to reduce debt will lead leverage measures to improve to about 3x compared with our previous expectation of about 4x for fiscal 2021. - Therefore, on Jan. 28, 2021, S&P Global Ratings revised its outlook on Corus to stable from negative. - At the same time, we affirmed our '##' long-term issuer credit rating on the company and our '##+' issue-level rating on Corus' senior secured debt. The '2' recovery rating on the debt is unchanged. - The stable outlook reflects our view that the company will maintain leverage measures at about 3.0x over the next 12 months driven by Corus' improving operating performance and ongoing debt reduction....

Research Update