Moody's lowers Lions Gate

Moody's Investors Service said it downgraded Lions Gate Entertainment Corp.'s corporate family rating to B1 from Ba3, its probability of default rating to B1-PD from Ba3-PD. Moody's also downgraded the senior unsecured notes to B3 from B2 issued under the company's subsidiary Lions Gate Capital Holdings LLC.

Concurrently, Moody's confirmed the Ba2 rating on its first-lien senior secured credit facilities issued by the company's subsidiary, consisting of a $1.5 billion revolving credit facility due 2023, a $750 million term loan due 2023 and a $1.25 billion term loan due 2025. The speculative grade liquidity rating was maintained at SGL-2.

“The rating action was due to sustained high leverage with expectations that leverage will remain high during the next 18 months before improving in 2022 to a level consistent with the B1 CFR,” Moody’s said in a press release.

The agency revised the outlook to stable, from under review. This rating action concludes the review for downgrade started on Oct. 16, 2019, Moody’s said.

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