Research Update: Warner Music Group Corp. 'B+' Rating On Watch Negative After Agreement To Buy Parlophone Label Group Feb 13
Standard & Poors, February 2013
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. On Feb. 11, 2013, Standard & Poor's Ratings Services placed its ratings on New York City-based recorded music and music publishing company Warner Music Group (WMG) on...
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.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
- Warner Music Group Corp.
- WMG Holdings Corp.
- WMG Acquisition Corp.
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