Thursday, 3 September 2015

SFX credit rating downgraded

With Robert Sillerman's having so far failed to take SFX back into private ownership, alongside investor unrest over that plan, some rather odd 'extra-curricular' share transactions and blocked and then unblocked payments ti  content owners from SFX subsidiary Beatport, SFX's latest bad news is recent decision by ratings agencies Moodys and Standard & Poor to downgrade the music firm's corporate credit rating. The company has said that it is having to dip into its cash reserves to a greater extent than planned, mainly because it was having to make more upfront payments in relation to its current programme of festivals.

The spate of bad news has contributed to a slump in the company's share price. Shares went to a low of 52 cents, compared to a share price of $3.70 at the start of the year, and the $5.25 per share rate Sillerman was, at one point, proposing to pay in order to regain control of his company. The company floated at a price of $13 per share in October 2013.

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