S&P cuts Warner Media

S&P said it lowered the issuer credit rating on Warner Media LLC and associated issue-level ratings to BBB- and removed the ratings from CreditWatch with negative implications where they were placed on May 18.

“The downgrade of Warner Media LLC and its associated unsecured debt to BBB- brings the ratings in line with new ultimate parent Warner Bros. Discovery Inc. On April 8, 2022, Discovery Inc. completed its merger with Magallanes, Inc., a subsidiary of AT&T Inc. Warner Media LLC, a subsidiary of Magallanes, includes legacy senior unsecured Warner Media bonds. Subsequently, Discovery has been renamed Warner Bros. Discovery Inc.,” S&P said in a press release

The legacy Warner Media debt of about $1.6 billion, does not benefit from any guarantees from the Warner Bros. Discovery structure.

Warner Media’s and Magallanes’ outlooks are positive reflecting the positive outlook on Warner Bros., S&P said.

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