Standard & Poor's Lowers Warner Music's Rating
August 16, 2010 at 4:26 AM (PT)
STANDARD & POOR's has lowered its outlook on WARNER MUSIC GROUP, lowering it's rating to "negative" from "stable," and assigned a BB- rating. S&P cited a continued decline in revenue and profit due to light album releases and ongoing challenges with the music industry's shift to digital distribution.
THE ASSOCIATED PRESS reports STANDARD & POOR's said "that despite WARNER MUSIC GROUP's vigilant cost-cutting measures, it will be less confident about the company's outlook 'until there is an indication that digital sales can resume at healthy growth rates and eventually offset physical CD sales declines.'"