Moody’s Bottom Rung – media edition

March 10, 2009

Moody’s published its “U.S. Bottom Rung” on Tuesday a list of companies that the corporate credit ratings agency thinks are at most risk of defaulting on their debt. There are 283 companies on the list, which is current as of March 1, including some near and dear names for people who love the media business.

Why do this? The Wall Street Journal offers some possibilities:

“Sounds like Moody’s may be trying to get out in front on defaults, given they were perhaps a little behind on subprime mortgages and commercial mortgage-backed securities,” said David Resnick, managing director at investment banking firm Rothschild Inc. which works on many corporate bankruptcies and restructurings.

Moody’s and credit-rating rival Standard & Poor’s Corp., were criticized by the Senate in hearings late last year about the effectiveness of the ratings agencies.

The Journal also says Moody’s enters risky territory by naming some companies that say they are in, as the paper put it, decent fiscal health.

That said, here are the media companies, along with their debt rating and outlook (don’t worry about the specific ratings – they’re all different ways of saying “junk”):

2 comments

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[...] your own decision about how much credence to put into this new Moody’s ranking. It looked to me like Emmis Communications had gotten ahead of the game with giant write-offs last [...]

Radio.. What Happened? Is citadel finally dead? Is radio dead. Will they piece meal out clusters? Who would buy anyway.

Posted by Tess | Report as abusive

To be fair there is many names that have been on such lists for years! Especially Charter for example.

The report indicates some companies that are not doing too bad so its not all bad news I guess.