S&P Global Downgrades Sinclair Because of COVID-19 Effects
S&P Global is revising its outlook on Sinclair Broadcast from positive to negative due to COVID-19 causing cancellation of live events, reduced consumer spending, and an expected decline in advertising, said a Thursday email to investors. “The negative outlook on…
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Sinclair reflects the uncertainty around the extent of coronavirus' impact on the company's performance,” and could worsen if advertising revenue is reduced, S&P Global said. Previous, rosier forecasts for Sinclair assumed growth in carriage of the company’s regional sports networks. “Further delays to sporting events could prolong the timeline for the regional sports networks to gain carriage,” the email said. In Sinclair’s last investor call, CEO Chris Ripley touted the company’s investments in regional sports networks and looked ahead to legal sports gambling as an important opportunity for the company (see 2002260056).