There appears to be no end in sight for Endeavor’s financial woes.
Just days after the Hollywood conglomerate announced lay offs, furloughs, and pay cuts for approximately 2500 employees — roughly one third of the company — it has now been hit with a credit rating drop from financial services company Moody’s.
Moody’s, which joined S&P Global Ratings in downgrading Endeavor sizeable debt from stable to negative, claimed that the company “has maintained very high leverage levels and issued additional debt to help fund acquisitions historically.”
“WME IMG is expected to have adequate liquidity due to cash on the balance sheet ($145 million pro forma for the On Location Experiences acquisition in January 2020) and a $200 million revolver that matures in 2023, but the liquidity position is projected to deteriorate until the impact of the coronavirus subsides,” read the Moody’s report (h/t Hollywood Reporter).