UMG GETS ITS FIRST CREDIT RATINGS

Universal Music Group is pleased with the first credit ratings assigned by Moody’s and S&P since it went public in September. The two ratings companies consider UMG “stable.”

“Both agencies highlighted our leadership in the music industry, best-in-class catalog, recurring and well-diversified revenue streams and low leverage as key drivers of these solid ratings,” said UMG EVP/CFO/President of Operations Boyd Muir (pictured). “The Baa1/BBB rating assignment is another positive recognition in our early days as a stand-alone publicly listed company."

Moody's Investors Service assigned a Baa1 long-term issuer rating and a Prime-2 short-term issuer rating to UMG and a P-2 rating to UMG’s proposed €1b commercial paper program. S&P gave UMG a BBB/A-2 rating.

Said Moody's lead analyst for UMG, VP/Senior Analyst Agustin Alberti, "The rating reflects the company's strong operating momentum, supported by the secular growth prospects of the music industry fueled by increasing consumer adoption of on-demand music streaming platforms, social media apps and other emerging digital platforms. The rating is also supported by UMG's prudent financial policy as reflected by its current low leverage and the public commitment to a solid investment grade rating."

The last time we got a rating, it resembled our high school report cards.