Corus credit and recovery rating downgraded

By Connie Thiessen Morningstar DBRS has downgraded Corus Entertainment’s credit rating, placing its senior unsecured notes in the “CCC” category, denoting speculative or junk grade, and a high level of default risk. Its recovery rating was also downgraded to RR5 from RR4 as the global credit rating agency continues to express concerns about the company’s liquidity position. The agency says those concerns, in part, are based on the higher seasonal working capital required to secure programming for the upcoming season and continued pressure on operating results, reflecting “secular headwinds” or a dampened environment for long-term growth. Corus announced earlier this...