Moody's trims Televisa

Moody's Ratings said it lowered Grupo Televisa, SAB's long-term issuer rating and its senior unsecured ratings to Baa3 from Baa2. The agency also downgraded Televisa's senior unsecured shelf to (P)Baa3 from (P)Baa2.

The downgrade reflects the view that despite rising profitability in 2024, Televisa's leverage (gross debt/EBITDA, as adjusted by Moody's) will cling above 3.5x (2.3x on a net basis) by the end of 2024, which is high for the rating category, Moody’s said.

“Moody's expects that operating challenges, including the secular decline in its DTH (direct-to-home) business, Sky, and the competitive nature of the Mexican market, will continue to pressure margins and organic growth and retained cash flow/net debt (measured as funds from operations – dividends/net debt, as adjusted by Moody's) will remain below 30% through 2026. All of which better position Televisa in the Baa3 rating category,” the agency said in a press release.

The outlook remains stable.

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