Moody’s lowers MediArena, facilities

Moody's Investors Service said it downgraded MediArena Acquisition BV’s, the owner of Endemol Shine Group (ESG), corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

Concurrently, the agency downgraded the ratings on the company's 2019 and 2021 first-lien senior secured facilities to B3 from B2 and the rating on the 2022 second-lien senior secured facility to Caa3 from Caa2.

The outlook was changed to stable from negative.

"Our decision to downgrade ESG follows a significant uptick in the company's leverage on the back of weaker-than-expected performance in 2016. EndemolShine also has limited scope to reduce its debt and weak cash flow as it forges ahead with restructuring plans and continues to invest in scripted programming, which requires substantial investment in working capital," Colin Vittery, Moody's vice president, senior credit officer and lead analyst for ESG, said in a news release.

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