Viacom’s credit has been downgraded by Moody’s Investor Service following a disclosure by the company that it will tap into debt markets to maintain liquidity, The Los Angeles Times reports.
“The ratings firm on Thursday lowered Viacom’s credit to one notch above junk status,” The Times reports. “The move came as Wall Street continued to digest news coming out of the Redstone family-controlled media company that owns MTV, Comedy Central, VH1, Nickelodeon and Paramount Pictures.”
The article quotes Pivotal Research senior analyst Brian Wieser writing in a report: “A uniquely bad situation now looks even worse.”
News broke earlier this week that interim CEO Thomas Dooley is leaving the company, as we reported previously.
“Viacom cut its dividend, reduced its earnings guidance and said it no longer was pursuing a sale of a stake in Paramount Pictures — which would have provided an infusion of cash,” The Times notes. “The company also disclosed that it was taking a $115 million write-down because it was expecting another wreck at the box office, ‘Monster Trucks,’ which is due in theaters in January.”