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Warner Music Group Corp. 'B+' Rating On Watch Negative After Agreement To Buy Parlophone Label Group Feb 13 Product Image

Warner Music Group Corp. 'B+' Rating On Watch Negative After Agreement To Buy Parlophone Label Group Feb 13

  • ID: 2403763
  • February 2013
  • Standard & Poors

FEATURED COMPANIES

  • Warner Music Group Corp.
  • WMG Acquisition Corp.
  • WMG Holdings Corp.
  • MORE

Abstract
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

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: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

- Warner Music Group Corp.
- WMG Holdings Corp.
- WMG Acquisition Corp.

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