Fitch Downgrades Skydance Credit Rating Amid Massive Merger Debt

Fitch Ratings downgraded Skydance's long-term issuer default rating to BB, citing elevated vulnerability to default risk. The merger has resulted in unprecedented debt levels for a media transaction, creating structural pressure from declining linear revenues and intense streaming competition.

While the company aims to reduce its net-debt-to-adjusted-earnings ratio significantly by 2029, credit agencies remain cautious. The firm faces execution risks as it attempts to integrate operations and navigate a volatile market environment.