S&P lowers Graham Holding

S&P said it lowered its ratings for Graham Holdings Co. to BB from BB+ because the agency expects Graham’s leverage to stay above its 2.5x downgrade threshold for BB+.

“We believe most of the company's key products and services will be hurt by factors such as travel restrictions, social distancing practices, lower expected advertising, and reduced demand for manufactured products. We do not believe the company will be able to fully offset these revenue declines by managing its cost base, and will, therefore, see materially lower EBITDA generation for at least the next 12 months,” said S&P in a press release.

The outlook is negative.

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