Paramount Skydance Dropped to Junk as WBD Financing Moves Forward

Fitch downgraded Paramount Skydance’s long-term issuer default rating from BBB- to BB+ and its senior unsecured debt from BBB- to BB+, with all ratings placed on Rating Watch Negative amid the Warner Bros. Discovery deal. The merger would carry about $79 billion in long-term debt, including roughly $33 billion Paramount will assume from WBD, and Moody’s and S&P Global have also placed Paramount Skydance on review for potential downgrades, underscoring elevated leverage and uncertainty around post‑transaction capital structure.