(April 22): Moody’s Ratings cut Getty Images Inc’s credit rating deeper into junk territory, citing weakening liquidity, with lingering uncertainty over a potential merger with Shutterstock Inc adding to the pressure.
The firm downgraded the visual media company’s rating by two notches to Caa1 from B2, according to a report released Tuesday, and revised the outlook to negative from stable, signalling the risk of further deterioration.
The move follows a legal setback after a US appeals court last week denied a request by Getty Images for a rehearing in its dispute with investors Alta Partners and CRCM Institutional Master Fund, according to a filing, leaving in place a ruling requiring the company to pay about US$88 million (RM347.95 million) plus interest.
Separately, the UK’s Competition and Markets Authority said last week that a potential deal between Getty Images and Shutterstock may lead to a “substantial lessening of competition” in the supply of editorial content and will be subject to an in-depth investigation.
Getty Images is facing mounting financial pressure due to legal liabilities and deal uncertainty. These events have left the company grappling with dwindling cash levels while it has to keep servicing expensive debt as maturities approach.
The company has US$295 million of unsecured notes maturing in March 2028 while its revolving credit facility comes due in May 2028. The facility’s maturity may be pulled forward to November 2027 if the notes aren’t refinanced by then. In total, the company reported about US$2 billion of debt at the end of 2025, according to results released last month.
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Getty Images said in the filing that it plans to fund the appeals court’s judgment by drawing on a US$150 million revolving credit facility. Moody’s, which estimates the payment at about US$110 million, said the move will add to liquidity pressure.
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