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Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Grupo Televisa, S.A.B.
Global Credit Research - 31 Jul 2020
New York, July 31, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Grupo Televisa, S.A.B. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
Grupo Televisa, S.A.B.'s (Televisa) Baa1 ratings are supported by its revenue diversification, solid competitive positioning, with strong broadcasting and pay TV market shares, solid EBITDA margin and very strong liquidity. The ratings also reflect Televisa's high leverage (that is, gross Moody's-adjusted debt/EBITDA) for the rating category, the challenges in its advertising businesses, high competitive pressures, and high capital intensity.
We expect Televisa's top line and EBITDA to decline in 2020, mainly affected by lower sales in the Content segment, with its advertising sales affected by the Mexico GDP contraction, but its Cable and SKY segments to remain resilient. Televisa has also taken several measures to preserve its cash flow, and benefits from a very solid liquidity position.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Pay TV published in December 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Marie Fischer-Sabatie Senior Vice President Corporate Finance Group Moody's de Mexico S.A. de C.V Ave. Paseo de las Palmas No. 405 - 502 Col. Lomas de Chapultepec Mexico, DF 11000 Mexico JOURNALISTS: 1 888 779 5833 Client Service: 1 212 553 1653 Marianna Waltz, CFA MD - Corporate Finance Corporate Finance Group JOURNALISTS: 0 800 891 2518 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653
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