Moody's cuts Getty Images CFR, loans & notes

Moody's Investors Service said it downgraded Getty Images, Inc.'s corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD reflecting weakened credit metrics and revised expectations for the company's operational performance over the next 12-18 months.

Ratings on the first-lien senior secured credit facilities were also downgraded to B2 from B1 and the 7% senior unsecured notes were downgraded to Caa2 from Caa1.

The outlook is stable.

Moody's said Getty Images is weakly positioned in the B3 rating due to its very high leverage; however, the company has some time to stabilize performance and reduce debt balances given no significant maturities until 2017 when the revolver matures, the term loan due 2019 is covenant-lite, and the first-lien leverage covenant under the revolver is applicable only when usage exceeds 20%.

The ratings are supported by Getty Images' leading positions in premium stills and editorial segments which account for the majority of revenues generated primarily from exclusive imagery, the agency noted.

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