Credit agency Moody’s Investors Service downgraded its rating on The Weather Channel Cos., adding that the parent of The Weather Channel faces some tough comparisons as it tries to tack down leverage while eking out a niche in the increasingly competitive content market.
Moody’s lowered TWCC’s corporate family credit rating to B2 from B1 and its probability of default rating to B2-PD from B1-PD. Reduced ratings generally mean it is more expensive for companies to obtain debt.
The Weather Channel went through a few rough months last year when it went dark to DirecTV customers in January – it returned in April 2014. While the channel has made some changes – it has increased its focus on weather forecasting and has scored ratings hits during the past snowy winter – Moody’s was disappointed it was unable to lower its leverage ratio as expected due to what the agency called “weak operating trends.”