Paramount Global has had its credit rating downgraded to junk status by Fitch Ratings due to concerns about the large amount of debt it will take on after acquiring Warner Bros. Discovery. The planned $110 billion deal would leave the combined company with at least $79 billion in debt. Fitch lowered Paramount’s rating from BBB- to BB+ and placed the company on negative watch, citing uncertainty about how the merged company will manage its financial obligations and integrate such a large media operation.
If the deal moves forward, Paramount would absorb major assets including CNN, HBO, TBS, and Cartoon Network. The new company is expected to be led by David Ellison with backing from Skydance Media. However, the large debt burden could increase borrowing costs and create pressure to reduce spending or sell assets as the company works to combine the two media giants.
https://www.latimes.com/entertainment-arts/business/story/2026-03-03/paramount-credit-downgraded-to-junk-status