Moody’s Investors Service has affirmed its ratings for Live Nation but reduced the company’s rating outlook to “Negative.”
Moody’s cited the likelihood that discretionary consumer spending will continue to deteriorate. It affirmed Live Nation’s noninvestment grade “B1” corporate family rating and “SGL-3” speculative grade liquidity rating, which indicates adequate liquidity.
Moody’s also affirmed the “Ba3” rating assigned to Live Nation’s bank credit facility.
However, Moody’s said a drop in consumer spending may significantly hurt cash flow. The potential for slower growth heightens the risk that Live Nation’s credit profile will fall short of expectations.