Fitch turns Globo local view to negative

Fitch Ratings said it revised the outlook for Globo Comunicacao e Participacoes SA’s local-currency issuer rating to negative from stable and affirmed the BBB- rating.

The weaker outlook reflects Globo's difficult challenges to resume high single-digit to double-digit EBITDA margins and robust cash flows competition in the advertising market, the agency said.

“In addition, results on the content business continue to face reduction on pay-TV subscription base in Brazil and still negative, although improving, performance on Globoplay. Globo's net cash and strong competitive position within the Brazilian media sector are important drivers of the ratings, partially offsetting the pressure on the company's operating performance,” Fitch said in a press release.

Fitch concurrently affirmed Globo’s long-term foreign-currency issuer default rating and dollar-denominated unsecured notes at BB. The foreign-currency IDR outlook remains stable.

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