Research Update: Live Nation Entertainment Inc. Downgraded To 'B' From 'B+', Outlook Negative; Debt Ratings Lowered

U.S.-based Live Nation Entertainment Inc. continues to suffer from the global cessation of music concerts during the coronavirus outbreak, and we now believe that a substantial return to live events is not likely until mid-2021. As a result, we expect the company's leverage will remain very high, above 10x in 2021, before recovering to the 6x area in 2022. We are lowering our issuer credit rating on the company to 'B' from 'B+'. The outlook is negative. At the same time, we are lowering our issue-level ratings on the company's secured debt to 'B+' from 'BB-' and on its unsecured debt to 'B-' from 'B'. The negative outlook reflects Live Nation's exposure to postponed and canceled events during the COVID-19

...- U.S.-based Live Nation Entertainment Inc. continues to suffer from the global cessation of music concerts during the coronavirus outbreak, and we now believe that a substantial return to live events is not likely until mid-2021. - As a result, we expect the company's leverage will remain very high, above 10x in 2021, before recovering to the 6x area in 2022. - We are lowering our issuer credit rating on the company to 'B' from 'B+'. The outlook is negative. - At the same time, we are lowering our issue-level ratings on the company's secured debt to 'B+' from '##-' and on its unsecured debt to 'B-' from 'B'. - The negative outlook reflects Live Nation's exposure to postponed and canceled events during the COVID-19 pandemic and uncertainty surrounding the ensuing economic recovery and the timing of the resumption of events in 2021. We believe there is substantial risk that social distancing could persist for an extended period or that the company will be unable to successfully manage its...

Research Update