Fitch downgrades Globo

Fitch Ratings said it downgraded Globo Comunicacao e Participacoes SA's long-term local currency (lc) issuer default rating to BB+ from BBB- but affirmed Globo's long-term foreign-currency IDR and U.S. dollar-denominated unsecured notes at BB+.

“The downgrade of the LT LC IDR reflects Globo's volatile operating results, its lower profitability compared with its investment-grade international peers, and the challenging industry trend toward audience fragmentation across digital and linear distribution platforms and the decline of the pay-TV subscription base,” Fitch said in a press release.

Globo’s conservation financial policy as demonstrated in its net cash balance, improved performance in 2023, and robust competitive position within the Brazilian media sector with local solid content, including live events and shows, a market still characterized by free-to-air TV as the foremost advertising platform in Brazil and the company's multiplatform and direct to consumer strategy mitigate the negative factors,” the agency explained.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.