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Credit Weakness Exposed as European Media Rolls Out its Consolidation Campaign Dec 00
Standard & Poors, Dec 2000
Abstract
Proactive European media companies are playing for higher stakes in the process of global media consolidation. Furthermore, expansion into the large and important U.S. market continues to be high on the boardroom agenda of many European publishers. The downside of this bullish behavior, however, is also evident: cumulative acquisition activity has led to higher debt and weaker credit ratios that are reflected in rating downgrades and outlook revisions. In terms of consolidation, the largest deal recently announced in this sector was the $4.5 billion acquisition of Harcourt General Inc. (BBB/Watch Pos/--) by the Anglo-Dutch publishing group Reed Elsevier, in conjunction with the Thomson Corp. (A-/Negative/--). Net of related disposals and $1.7 billion in equity funding, Reed Elsevier will be taking...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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