Moody's Puts Paramount on Review for Downgrade to Junk -- WSJ

Dow Jones
Yesterday

By Heather Gillers

Moody's Investors Services said Friday it is placing Paramount Global on review for a downgrade following parent company, Paramount Skydance's winning bid to buy to Warner Bros. Discovery. Paramount Global carried Moody's lowest investment grade rating of Baa3 so a downgrade would push the company into speculative grade territory, or "junk" status.

Moody's said that while buying Warner Bros. will improve margins and add revenue diversity for Paramount Skydance, it will also "materially increase" leverage and complexity in the company's debt load. Integrating the two companies will also bring challenges, the ratings firm said.

Paramount Skydance offered $31 a share to purchase the company, a bid rival competitor Netflix declined to match.

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February 27, 2026 18:30 ET (23:30 GMT)

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