Paramount’s Debt Downgraded to Junk Following Warner Bros. Purchase Deal

Paramount Skydance Corp. shares fell more than 8% after Fitch Ratings downgraded the film and TV company’s debt rating to junk to reflect a surge in borrowings from the $110 billion takeover of Warner Bros. Discovery Inc.

Fitch cut its rating on Paramount to BB-plus, according to a statement late Monday. It was previously BBB-minus, the lowest investment-grade rating. The ratings service also said Paramount is on negative watch pending details on deal terms, financing and deleveraging efforts.