S&P; Revises View of MGM Pathe Debt:...
From Times Staff and Wire Reports
S&P; Revises View of MGM Pathe Debt: Standard & Poor’s Corp. said the company’s subordinated debt, which carries a B rating, remains on Credit Watch, while the credit implications are revised to negative from developing. The implied senior rating on the approximately $395 million of debt is BB-. S&P; said it made the change since significant parts of MGM’s latest merger were financed by selling TV and home video rights to films in the company’s library as well as future releases, diminishing future cash flow.
