Moody’s downgrades Cast & Crew

Moody’s Investors Service said it finished its review of Cast & Crew Payroll, LLC’s ratings it started on March 27, and downgraded the company’s corporate family rating to Caa1 from B3 and its probability of default rating to Caa1-PD from B3-PD.

Concurrently, Moody’s downgraded the company’s first-lien bank credit facility to B3 from B2.

“The rating action reflects the considerable anticipated deterioration in the issuer’s credit protection measures, which are expected to remain weak in FY21 (ending June 2021), as a result of ongoing systemic production disruptions related to the coronavirus outbreak impacting Cast & Crew’s client base in its core media and entertainment markets,” the agency said in a press release.

Moody’s revised the outlook to stable from under review.

“The stable ratings outlook reflects Moody’s projection for gradual sequential improvement in quarterly operating trends from currently depressed levels, but at a pace that results in weak credit protection measures throughout FY21,” the agency said.

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