New York City-based recorded music and music publishing company Warner Music Group Corp. has entered into a definitive agreement to acquire U.K.-based Parlophone Label Group from Universal Music Group. We expect that Warner Music Group's adjusted debt leverage (excluding potential synergies) will remain in the mid-6x area pro forma for the transaction. We are placing our 'B+' corporate credit rating on Warner Music Group on CreditWatch with negative implications. The CreditWatch listing reflects the potential for increased leverage and the risk that the company will not meaningfully reduce leverage in the coming year. NEW YORK (Standard & Poor's) Feb. 11, 2013--Standard & Poor's Ratings Services today placed its ratings on New York City-based recorded music and music publishing company Warner...
Companies mentioned in this report are:
- Warner Music Group Corp.
- WMG Holdings Corp.
- WMG Acquisition Corp.
Action: On CreditWatch:Negative
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Research type: News
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