Moody’s rates Outfront notes B2

Moody’s Investors Service said it assigned a B2 rating the senior unsecured notes due 2029 of Outfront Media Capital LLC, a subsidiary of Outfront Media Inc.

The B1 corporate family rating of Outfront, the Ba1 senior secured and the B2 rating on the existing senior unsecured notes issued by the subsidiary remain unchanged, the agency said.

The outlook remains negative.

Proceeds of the $500 million senior note and cash from the balance sheet will be used to repay the $500 million senior note due 2024.

Outfront’s B1 corporate family rating reflects the impact from the Covid-19 pandemic on outdoor advertising spending, which has led to higher leverage and decreased operating cash flow. The smaller transit division, which had been the fastest growing division prior to the pandemic, has been impacted more severely and will take longer to recover than the billboard division.

Moody's said it expects that Outfront’s high pro forma leverage of 8.9x as of quarter three of 2020 will increase further in the near term before year-over-year performance improves in quarter two of 2021.

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