Moody’s: Globo Comunicacoes on downgrade review

Moody’s Investors Service said it placed Globo Comunicacoes e Participacoes SA’s Baa2 senior unsecured rated debt and Baa2 issuer rating on review for downgrade.

The downgrade review follows a recent similar action by Moody’s when it placed Brazil’s Baa3 government bond rating on review for downgrade.

Globo’s ratings on downgrade review include the Baa2 rating on its $200 million 5.307% senior global notes due 2022, Baa2 rating on its $300 million 4 7/8% global notes due 2022 and Baa2 rating on its $325 million global bonds due 2025.

The review will focus on the result of Brazil’s government bond rating review process, as well as Globo’s correlation with the Brazilian economy and the impacts on the company’s operating performance, credit metrics and foreign-exchange exposure, Moody’s said.

Globo’s ratings are mainly supported by its very strong credit metrics and liquidity, as well as its leading market position in the Brazilian TV broadcasting market, the agency said.

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