Fitch Downgrades Televisa's IDR to 'BBB', Outlook Negative

TL;DR

**Fitch just downgraded Televisa's credit rating to 'BBB' with a negative outlook, signaling higher borrowing costs ahead.**

AI Summary

On January 30, 2024, Grupo Televisa, S.A.B. (NYSE:TV) announced that Fitch Ratings downgraded its Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) to 'BBB' from 'BBB+'. While Fitch affirmed Televisa's 'AAA(mex)' National Long-Term Rating, the outlook for both ratings was revised from Stable to Negative. This downgrade and negative outlook signal increased financial risk for Televisa, which could make it more expensive for the company to borrow money and potentially impact its profitability, a key concern for current and prospective shareholders.

Why It Matters

A credit rating downgrade typically increases a company's borrowing costs, which can reduce its profits and make its stock less attractive to investors. The negative outlook suggests further downgrades are possible, adding to investor uncertainty.

Risk Assessment

Risk Level: medium — The downgrade and negative outlook indicate increased financial risk for Televisa, potentially impacting its ability to raise capital cheaply.

Analyst Insight

An investor should monitor Grupo Televisa's upcoming financial reports for any signs of increased debt costs or deteriorating financial health, and consider the potential impact on profitability before making investment decisions.

Key Numbers

• BBB — New Long-Term IDR (The new rating for Grupo Televisa's Long-Term Foreign and Local Currency Issuer Default Ratings.)
• BBB+ — Previous Long-Term IDR (The previous rating for Grupo Televisa's Long-Term Foreign and Local Currency Issuer Default Ratings.)
• AAA(mex) — Affirmed National Long-Term Rating (The National Long-Term Rating that Fitch Ratings affirmed for Televisa.)

Key Players & Entities

• Grupo Televisa, S.A.B. (company) — the company whose ratings were downgraded
• Fitch Ratings (company) — the credit rating agency that issued the downgrade
• BBB (rating) — the new Long-Term Foreign and Local Currency Issuer Default Rating
• BBB+ (rating) — the previous Long-Term Foreign and Local Currency Issuer Default Rating
• AAA(mex) (rating) — the affirmed National Long-Term Rating
• January 30, 2024 (date) — the date of the rating action announcement

Forward-Looking Statements

• Grupo Televisa's borrowing costs will likely increase in the near future. (Grupo Televisa, S.A.B.) — high confidence, target: Q1 2024
• The negative outlook could lead to further rating downgrades if financial performance deteriorates. (Grupo Televisa, S.A.B.) — medium confidence, target: Next 12-18 months

FAQ

Filing Documents

• ff2971349_6k-grupo.htm (6-K) — 21KB
• image0.jpg (GRAPHIC) — 8KB
• 0000895345-24-000023.txt ( ) — 34KB

From the Filing

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULES 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of January, 2024 Commission File Number: 001-12610 GRUPO TELEVISA, S.A.B. (Translation of registrant's name into English) Av. Vasco de Quiroga No. 2000, Colonia Santa Fe 01210 Mexico City, Mexico (Address of principal executive offices) (Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.) Form 20-F Form 40-F Investor Relations PRESS RELEASE Televisa informs about rating action from Fitch Ratings Mexico City, January 30, 2024 - Grupo Televisa, S.A.B. ("Televisa" or the "Company"; NYSE:TV; BMV:TLEVISA CPO) announced today that Fitch Ratings downgraded its Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) on the Company to BBB' from BBB+'. Fitch Ratings also affirmed its AAA(mex)' National Long-Term Rating and local currency senior unsecured debt ratings on Televisa. The Rating Outlook for both ratings was revised to Negative from Stable. About Televisa Grupo Televisa S.A.B. ("Televisa") is a major telecommunications corporation which owns and operates one of the most significant cable companies as well as a leading direct-to-home satellite pay television system in Mexico. Televisa's cable business offers integrated services, including video, high-speed data and voice to residential and commercial customers as well as managed services to domestic and international carriers. Televisa owns a majority interest in Sky, a leading direct-to-home satellite pay television system and broadband provider in Mexico, operating also in the Dominican Republic and Central America. Televisa holds a number of concessions by the Mexican government that authorizes it to broadcast programming over television stations for the signals of TelevisaUnivision, Inc. ("TelevisaUnivision"), and Televisa's cable and DTH systems. In addition, Televisa is the largest shareholder of TelevisaUnivision, a leading media company producing, creating, and distributing Spanish-speaking content through several broadcast channels in Mexico, the US and over 50 countries through television networks, cable operators and over-the-top or "OTT" services. Televisa also has interests in magazine publishing and distribution, professional sports and live entertainment, and gaming. Disclaimer This press release contains forward-looking statements regarding the Company's results and prospects. Actual results could differ materially from these statements. The forward-looking statements in this press release should be read in conjunction with the factors described in "Item 3. Key Information – Forward-Looking Statements" in the Company's Annual Report on Form 20-F, which, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this press release and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Contact Information Investor Relations www.televisair.com.mx Tel: (52 55) 5261 2445 Rodrigo Villanueva, VP, Head of Investor Relations / rvillanuevab@televisa.com.mx Andrs Audiffred, Investor Relations Director / aaudiffreda@televisa.com.mx Media Relations Rubn Acosta / Tel: (52 55) 5224 6420 / racostamo@televisa.com.mx Alejandra Garcia / Tel: (52 55) 4438 1205 / agarcial@televisa.com.mx SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. GRUPO TELEVISA, S.A.B. (Registrant) Dated: January 30, 2024 By /s/ Luis Alejandro Bustos Olivares Name: Luis Alejandro Bustos Olivares Title: Legal Vice President and General Counsel

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View this 6-K filing on SEC EDGAR