S&P cuts Octave Music

S&P said it downgraded the Octave Music Group Inc. and its senior secured credit facility to B- from B and placed the ratings on CreditWatch with negative implications.

“The downgrade reflects our expectation for substantial revenue declines in the Touchtunes segment due to the coronavirus. A growing number of U.S. cities and states have enacted restrictions on public gatherings to limit the spread of the coronavirus. We expect these policies to hurt Octave's revenue growth in its two product segments, Touchtunes and Playnetwork, which are exposed to retail, bar and restaurant clients,” said S&P in a press release.

The CreditWatch placement reflects the company's direct exposure to reduced foot traffic in bars and restaurants using its Touchtunes jukebox products due to government limitations on social gatherings.

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