S&P turns Outfront Media view to stable

S&P said it revised its outlook for Outfront Media Inc. to stable from positive and affirmed its B+ issuer rating.

“We expect Outfront's leverage to remain about 6x in 2023. We lowered our previous revenue and EBITDA expectations for 2023 by 2% and 7%, respectively, and now believe the company will not reduce leverage below our 5.5x upgrade threshold until the end of 2024. We expect advertising trends to remain depressed through the remainder of 2023 as economic growth slows, which will limit the company's revenue growth.

“Additionally, higher lease expenses driven by new boards acquired in 2022 and better performance in the first half of 2023 in large markets (that typically have revenue share agreements) will weigh on the company's EBITDA margins in 2023,” S&P said in a statement.

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