Moody’s revises Getty Images view to negative

Moody's Investors Service said it revised the outlook to negative from positive and affirmed Getty Images, Inc.'s B3 corporate family rating and B3-PD probability of default rating.

Concurrently, Moody's affirmed the B2 ratings on the first-lien credit facilities, comprising the $80 million revolving credit facility, a €450 million first-lien euro term loan and $1.03 billion first-lien term loan, and the Caa2 rating on the $300 million senior unsecured notes.

` “The cancellation or postponement of major world events, including entertainment, live concerts and sports, combined with the expected reduction in global advertising spend and suspension of several film and video production projects will lead to a substantial, albeit temporary, deterioration in Getty's profitability and a spike in financial leverage to over 8.5x (Moody's adjusted),” the agency said in a press release explaining the outlook revision.

“As the virus threat is neutralized, major events are rescheduled and advertising spending gradually rebounds at the end of 2020, and into 2021, Moody's projects leverage will decline to the 7.5x-8x area by the end of next year,” Moody’s said.

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