Red Ventures Holdco L.P.?s S&P Global Ratings-adjusted gross leverage increased significantly to 6.4x in 2024, and we expect it to further increase to 7x in 2025 due to the loss of its largest customer in early 2025 and challenged macroeconomic conditions hurting advertiser spending. We therefore lowered our issuer credit rating on Red Ventures to ?B+? from ?BB-?. We also lowered our issue-level rating on the company?s senior secured debt to ?B+? from ?BB-?. The recovery rating remains ?3?. The negative outlook reflects Red Ventures? currently elevated gross leverage for the ?B+? rating. We could lower our rating over the next couple quarters if we believe the company will not be able to reduce leverage below 5x over the next
