Fitch revises Lions Gate view to negative

Fitch Ratings said it revised the outlook for Lions Gate Entertainment Corp., Lions Gate Entertainment Inc. and Lions Gate Capital Holdings LLC, collectively Lions Gate, to negative from stable and affirmed the long-term issuer default ratings at B.

The outlook revision reflects Fitch-calculated leverage significantly exceeding Fitch's negative rating threshold due primarily to timing mismatches created by operating trends remaining from the pandemic and increased production costs driven by continued heightened content investment by linear and digital distribution platforms. It incorporates Fitch's uncertainty about the performance of theatrical releases in the next two years as theatre attendance is not expected to return to pre-pandemic levels,” the agency said in a press release.

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