S&P puts Dotdash on watch

S&P said it placed its ratings for Dotdash Meredith Inc., including its BB- term loan rating, on CreditWatch with negative implications.

Dotdash failed to meet S&P’s initial 2022 estimates on higher-than-expected restructuring costs and declines in its digital pro forma advertising revenue due to macroeconomic weakness and integration delays, the agency noted.

“The CreditWatch placement reflects the high likelihood we will lower our ratings on Dotdash Meredith Inc. before the end of the year given our revised expectations for an economic recession in the first half of 2023. S&P Global economists have recently revised their 2023 baseline forecast to a shallow recession occurring in the first half of the year, from previous expectations of a 40%-50% chance of a recession in 2023,” S&P said in a press release.

S&P said it aims to resolve the CreditWatch before Dec. 31 after reviewing Dotdash’s latest earnings report and assessing the effect a recession would have on it.

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