Moody’s might cut MGM

Moody's Investors Service placed Metro-Goldwyn-Mayer Inc.'s Ba3 corporate family rating, Ba3-PD probability of default rating, Ba2 first-lien senior secured credit facility rating, and B2 second-lien senior secured credit facility rating on review for downgrade.

The agency said it put the company on review given its expectations for much higher debt and leverage than originally expected during 2019 and 2020 due to significant investment in new original content to bolster EPIX following the leveraged acquisition, as well as working capital needs for film and TV production more broadly.

MGM's outlook was changed to ratings under review for downgrade from negative.

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