S&P shifts ITV view to negative

S&P said it revised the outlook on ITV plc to negative from stable and affirmed its long-term ratings on the group and its debt at BBB-.

The negative outlook indicates S&P could lower the rating over the next 24 months if ITV is unable to maintain S&P Global Ratings-adjusted leverage below 2.5x on a sustainable basis. The uncertainty around the length and the severity of the coronavirus pandemic and its effect on global economic growth and ITV's revenue and profitability also put pressure on the rating, the agency said.

“As the coronavirus pandemic escalates and growth heads sharply lower against a backdrop of volatile markets and growing credit stress, we now forecast a global recession this year and believe advertisers will likely reduce their marketing spend. In 2019, total advertising revenue was 53% of ITV's external revenue,” S&P said in a press release.

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