CAA has been "hit with a credit rating downgrade from S&P Global Ratings," as the research firm reduced the agency's rating to B, from B+, with a "stable outlook," according to Etan Vlessing of the HOLLYWOOD REPORTER. S&P argued that CAA's talent roster has been "impacted by the major studios pausing virtually all film and TV production amid the coronavirus pandemic, or due to the cancellation or postponement of multiple live events, including sports, music concerts and festivals," and the result of such stoppages will "'materially affect' CAA's earnings and debt ratios" for FY '20. Vlessing noted CAA earlier became the latest Hollywood agency to "impose pay cuts to weather the coronavirus pandemic." Rival agencies like WME, UTA, ICM Partners and Paradigm also have "seen their revenues dry up" (HOLLYWOODREPORTER.com, 5/4). THE WRAP's Trey Williams noted the downgrade comes just as the talent agency raised $75M in a "new debt sale to add liquidity and cushion its balance sheet." But the downgrade "doesn’t change much for CAA, still representing a highly speculative rating for the talent agency’s credit" (THEWRAP.com, 5/4).
