Paramount to Join Biggest Junk Borrower Ranks After Warner Deal

Fitch Ratings’ decision to cut Paramount Skydance Corp.’s credit ratings to junk put the media company on track to be one of the biggest borrowers in the US high-yield bond market, after it agreed to take over rival Warner Bros. Discovery Inc. in a $110 billion buyout.

The bond grader lowered its ratings on Paramount by one notch, to BB+, the highest junk rating. Fitch said it might downgrade Paramount further, once it gets more clarity on final financing terms and how quickly the combined company will pay down debt.

Paramount last week agreed to buy Warner Bros. after ...