Moody's affirms Warner Music

Moody's Investors Service said it affirmed Warner Music Group's ratings, including its B1 senior implied rating, following the announcement of a $350 million cash distribution to the equity sponsor group. The outlook is stable.

Moody's affirmed Warner's B1 rated $250 million senior secured revolving credit facility, B1 rated $1.2 billion senior secured term loan, B3 rated $650 million of senior subordinated notes due 2014, B1 senior implied rating, SGL-2 speculative grade liquidity rating and B2 senior unsecured issuer rating.

While the distribution is sizable and unexpected, Moody's said Warner Music has performed sufficiently above plan to be able to continue to support its existing ratings. Additionally, the global music industry has strengthened and has reported greater than anticipated improvement in revenues in 2004 after several years of decline.

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