Paramount Debt Is Cut to Junk on Worsening Outlook for TV (1)

Paramount Global’s debt rating was cut to junk by S&P Global Ratings, which cited pressure on cash flow because of the continued decline in the company’s broadcast and cable TV business.

S&P reduced its rating on Paramount debt to BB+ from BBB-, according to a statement Wednesday. The company, the parent of CBS and MTV, had $14.6 billion in long-term debt at year end.

The company’s bonds declined after the downgrade. Its 6.375% notes due 2062 widened 18 basis points to 499 basis points over the benchmark, according to pricing source Trace.

The film and TV giant, controlled by ...