Fitch rates WarnerMedia notes BBB-

Fitch Ratings said it affirmed the BBB- long-term issuer default ratings of Warner Bros. Discovery, Inc., Discovery Communications, LLC and Warner Media, LLC, and Discovery's short-term issuer default rating of F3.

Fitch also affirmed the BBB- long-term issuer default rating of WarnerMedia Holdings, Inc.

Magallanes, Inc., the original issuer of debt undertaken to fund Discovery's merger with AT&T's WarnerMedia assets, changed its name to WarnerMedia Holdings after the merger's completion.

Fitch also affirmed the BBB- senior unsecured ratings for instruments at Discovery and WarnerMedia Holdings the BB+ senior unsecured ratings for instruments at Warner Media and the F3 commercial paper rating at Discovery.

Fitch also assigned a long-term issuer default rating of BBB-, short-term issuer default rating of F3 and a commercial paper rating of F3 to Discovery Communications Benelux BV, Warner Bros. Discovery’s European issuer of commercial paper, and a BBB- rating to WarnerMedia Holdings’ issuance of senior unsecured notes due 2026.

Finally, Fitch affirmed and withdrew the F3 short-term issuer default rating and commercial paper ratings of Magallanes.

“WBD is well-positioned within its rating category with leading positions in scripted, reality-based, news, sports and documentary programming,” the agency said in a news release.

Fitch noted that the company still lacks the size and diversification of Walt Disney Co. (A-/stable) and NBC Universal Media LLC (A-/stable).

And although Warner Bros. Discovery is larger than ViacomCBS Inc. (BBB/stable), leverage is slightly higher, the agency added.

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