Moody's Ratings changed Grupo Televisa's outlook to negative, from stable, due to operational challenges.
It also reaffirmed its long-term issuer rating at Baa3.
“The negative outlook reflects our expectation that Televisa’s competitive position faces operational challenges that could limit improvements in the near future,” the rating agency said in a statement yesterday. “In June 2024, this trend will be challenged to reverse, following the cleanup exercise carried out in the third quarter of 2023.” Between July and September last year, Televisa carried out a cleanup exercise for its cable segment customers, and Moody’s said the rule was aimed at improving profitability and managing volatility.
He said that this sector continues to record negative growth despite the fact that in July of this year, Televisa completed the acquisition of the remaining 41.3 percent of Sky.
“We expect the cable segment (which generates 75 percent of the company’s consolidated revenue) to continue to improve — or at least remain stable — driven by broadband demand,” Moody’s said.
