S&P cuts Diamond Sports

S&P said it cut issuer credit ratings on Diamond Sports Holdings LLC and subsidiary Diamond Sports Group LLC to CCC from CCC+ based on heightened concerns of a subpar debt exchange or redemption over the next year, which would be viewed as equivalent to a default.

Diamond Sports Group reported it wants to raise $500 million to $600 million and use the cash to buy back its debt at a discount. “Absent a potential debt restructuring, we expect DSG's leverage will be well above 10x over the next several years and that discretionary cash flow (after payments to minority shareholders) will be negative,” the agency said in a press release.

S&P noted DSG has enough liquidity over the next 12 months but could have a shortfall in the second half of 2022.

The outlook is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.