Moody's rates DreamWorks Ba2, notes Ba3

Moody's Investors Service said it assigned DreamWorks Animations SKG, Inc. a Ba2 corporate family rating, Ba2-PD probability of default rating and a Ba3 (LGD5-76%) rating to its proposed $300 million seven-year senior unsecured notes.

Moody's also assigned the company a speculative grade liquidity rating of SGL-2. The outlook is stable.

Proceeds from the new notes will be used to pay down the $155 million outstanding balance on the company's $400 million revolving credit facility and for general corporate purposes.

Moody's said the Ba2 corporate family rating reflects DreamWorks' conservative financial policies and history, and significant presence in the worldwide theatrical animation segment, constrained by the company's relatively small scale, business diversity and the inherently risky nature of the film business.

© 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.