S&P Puts Paramount on Negative Credit Watch
Airfind news item
By Etan Vlessing
Published on March 3, 2026.
S&P Global has placed Paramount Skydance on a watch for a possible credit rating downgrade following the studio's $31 per share bid to merge with Warner Bros. Discovery. The ratings firm has revised its outlook for Paramount to negative, while affirming its BB+ credit rating. S&P believes that the acquisition, estimated to cost $111 billion, will increase Paramount's leverage well above the 4.25x downgrade threshold for the current rating. The company has not provided any details on how it will finance the transaction. The rating firm could lower its issuer credit rating by at least one notch depending on Paramount's performance and ability to reduce its overall debt load.
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