Moody's trims Meredith

Moody's Investors Service said it downgraded Meredith Corp.’s corporate family rating to B2 from B1 and its probability of default rating to B2-PD from B1-PD.

Moody's, however, affirmed the senior secured term loan and the senior secured revolver ratings at Ba2, but downgraded the senior unsecured notes to Caa1 from B3. The speculative grade liquidity rating was downgraded to SGL-2 from SGL-1.

“The actions reflect material and sustained deterioration in anticipated financial performance of Meredith due to coronavirus outbreak with anticipation of a relatively slow recovery in advertising revenue as coronavirus outbreak subsides. The downgrade on the senior unsecured notes reflects increased expected loss due to deterioration in overall credit quality of Meredith,” said the agency in a press release.

The outlook is stable.

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