Fitch Ratings downgraded Paramount Skydance to junk status
The downgrade follows Warner Bros. Discovery acquisition deal
Other rating agencies Moody's and S&P have placed Paramount on review
All ratings are on 'Rating Watch Negative' for potential further downgrades
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Fitch Ratings downgraded Paramount Skydance's debt to junk status on March 3, 2026, following the media giant's mammoth acquisition deal for Warner Bros. Discovery, which is set to amass substantial new debt and expose the company to additional financial risks. The credit agency reduced Paramount Skydance's long-term issuer default rating from 'BBB-' to 'BB+', placing it into speculative-grade investment territory commonly known as 'junk.' Additionally, Fitch downgraded the company's senior unsecured debt from 'BBB-' to 'BB+' and placed all ratings on 'Rating Watch Negative,' signaling that further downgrades may be forthcoming. This decision comes as Paramount Skydance navigates the complexities of its recently announced Warner Bros. Discovery deal, which has raised concerns about the company's ability to manage its growing debt burden in an increasingly competitive media landscape. The downgrade reflects Wall Street's growing apprehension about the financial viability of the merger, with other major credit rating agencies Moody's and S&P Global having already placed Paramount on review for potential downgrades, suggesting a broader industry consensus on the mounting financial risks.
Fitch Ratings, Inc. is an American - British credit rating agency. It is one of the three nationally recognized statistical rating organizations (NRSRO) designated by the U.S. Securities and Exchange Commission and is considered as being one of the "Big Three credit rating agencies", along with Mood...
Paramount Skydance Corporation (doing business as Paramount) is an American multinational mass media and entertainment conglomerate. The company is headquartered at the Paramount Pictures lot in the Hollywood neighborhood of Los Angeles, California, with multiple of Paramount's divisions and subsidi...
Mar 3, 2026 8:38am PT Paramount Skydance Debt Downgraded to Junk Status by Fitch Ratings Following Warner Bros. Discovery Deal Credit rating agencies Moody's and S&P Global have placed Paramount on review for potential downgrades By Todd Spangler Plus Icon Todd Spangler NY Digital Editor xpangler Latest Paramount Skydance Debt Downgraded to Junk Status by Fitch Ratings Following Warner Bros. Discovery Deal 6 minutes ago Warner Bros. Discovery Likely to Take New Paramount Skydance Offer Under Review While Still Recommending Netflix Pact to Shareholders 1 week ago Hearst Magazines Union Ratifies New Deal With Company Covering 410 Members 1 week ago See All With its mammoth deal for Warner Bros. Discovery , Paramount Skydance is set to amass a ton of new debt and it faces a number of other financial risks. Now one of Wall Street’s big credit-rating agencies has downgraded Paramount’s debt to junk status and cut its issuer default ratings. Fitch Ratings downgraded Paramount Skydance’s long-term issuer default rating to from “BBB-” to “BB+,” putting it into speculative-grade investment territory (aka “junk”). In addition, Fitch downgraded Paramount Skydance’s senior unsecured debt from “BBB-” to “BB+” — and placed all the ratings on “Rating Watch Negative,” indicating that further downgrades may be in the offing. Related Stories MGK Talks 'Unassuming' Tommy Hilfiger Partnership, His 'Lost Americana' Tour Wardrobe and Bringing Back Wired Headphones: 'I'll Take Credit For That'
