S&P affirms WMG

Standard & Poor's said it affirmed its B+ long-term corporate credit rating on WMG Acquisition Corp.

All ratings on WMG Acquisition Corp. have been removed from CreditWatch with positive implications, where they were previously placed on April 20.

The outlook is stable.

Affected ratings include the company's secured debt at B+ and subordinated debt at B-.

S&P noted the rating on WMG reflects its heavy debt burden as a result of an LBO and debt-financed capital distributions to shareholders and the risks associated with the industry's migration to a digital downloading business model, the extent of cost-downsizing that may be required as the online migration continues and persisting leakage to piracy.

These risks are partially offset by the higher margins and greater stability of WMG's music publishing business, the industry's progress in combating piracy and establishing a legitimate commercial digital platform and the company's competitive position and decent free cash flow, the agency added.

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