Moody’s downgrades Tullow Oil to Ca amid debt maturity concerns

Investing.com -- Moody’s Ratings has downgraded Townsquare Media, Inc.’s Corporate Family Rating (CFR) to B3 from B2, the rating agency announced Tuesday.

The downgrade reflects expectations of lower revenue growth, EBITDA, and free cash flow over the next 12-18 months than previously anticipated. Moody’s also downgraded the company’s Probability of Default Rating to B3-PD from B2-PD, senior secured first lien bank credit facilities ratings to B3 from B2, and Speculative Grade Liquidity Rating to SGL-3 from SGL-2.

The outlook remains stable for the media company, which continues to face secular pressures in the radio industry and macroeconomic uncertainties affecting government advertising budgets.

Moody’s now expects Townsquare’s adjusted debt to EBITDA to be in the low 6.0x or high 5.0x range after adding back one-off costs in 2025. For 2026, the agency forecasts adjusted leverage improving to the mid-5.0x range, based on low single-digit revenue growth and high single-digit EBITDA growth.

The company has expanded its digital revenue to 54% of total revenue as of September 2025, compared to 52% in 2024 and 50% in 2022. However, digital growth was muted over the last year and insufficient to offset the decline in traditional radio broadcast, especially in a non-political year.

Townsquare’s liquidity is expected to remain adequate over the next 12-18 months, supported by a $4 million cash balance as of September 2025, annual free cash flow after dividend payout of $15-$20 million, and $15 million remaining availability under a $20 million revolving credit facility expiring in 2030.

The company’s debt maturity profile is well-positioned with its senior secured first lien revolving credit facility and first lien term loan due February 2030. The term loan has no financial covenants, while the revolving credit facility has a springing net first lien leverage covenant when 30% of the revolver is drawn.

Moody’s indicated that ratings could be upgraded if Townsquare demonstrates consistent organic revenue growth and expanding EBITDA margins leading to adjusted financial leverage sustained below 5x and free cash flow to debt ratio over 5%. Conversely, ratings could be downgraded if organic revenue declines materially, financial leverage is sustained above 6.0x, or free cash flow or liquidity weakens.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Canadian consumer stocks are positioned for varying performances in 2026, with auto parts manufacturers and value retailers leading the way, according to a recent BMO Capital Markets report. Analyst Etienne Ricard highlights companies with self-help initiatives and defensive market positioning as top picks in an environment where Canadian consumers remain cautious and value-conscious.

The report, "Consumer Outlook: Shifting Gears Into 2026," identifies these top Canadian consumer stocks:

1. Magna International (MGA) - BMO’s top pick features multiple margin improvement catalysts through operational excellence initiatives and higher-margin contracts. The company is expected to grow EBIT margins by 35-40 basis points year-over-year in 2026. Free cash flow is projected to reach $1.3 billion in 2026, enabling deleveraging to the target 1.5x by Q4/26 and potential share repurchases resuming in Q2/26.

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2. Linamar (LNR) - This auto parts manufacturer is focusing on integration and synergy capture from recent acquisitions (Aludyne and GF Leipzig), with margins expected to reach company levels by Q1/26. The company is navigating volatility in the agricultural equipment market while pursuing new business opportunities driven by production reshoring trends. Share repurchases are expected to resume in Q4/25.

3. Dollarama (DOL) - The discount retailer maintains strong growth prospects through its ability to pass through price mark-ups while maintaining relative value. Expansion continues in Canada (targeting 2,200 stores by 2034), Latin America (1,050 stores by 2031), and Australia (700 stores by 2034). The company opened its first store in Mexico in June 2025 and is transitioning to two logistics hubs in Canada.

4. Metro (MRU) - The grocer is accelerating store openings focused on discount banners, with about 12 new stores planned for 2026. The company is resuming operations at its Toronto Frozen Distribution Center and awaiting Quebec’s implementation of legislation to expand pharmacists’ scope of practice at Jean Coutu. Metro consistently delivers on its financial framework of 8-10% EPS growth.

The report notes that industry dynamics, including stable North American vehicle production, accelerating grocery square footage growth, and consumers’ continued focus on value, will shape performance across these sectors in 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- The S&P 500 struggled for direction Tuesday as Federal Reserve kicked off its two-day meeting, which is expected to culminate in third rate cut for the year.

At 3:18 ET (20:18 GMT), the Dow Jones Industrial Average fell 119 points, or 0.3%, and the S&P 500 index was flat, while the NASDAQ Composite slipped 0.2%.

Fed meeting kicks off as widely expected rate cut decision looms

The Fed got its latest two-day policy meeting underway, which investors are expecting will end with a cut to U.S. interest rates on Wednesday.

The chances of an easing from Fed’s current target rate of 3.75%-4% now stand at roughly 89%, CME FedWatch has shown.

Still, with some policymakers recently flagging concerns around unveiling a third cut since September during a time when fresh economic data has been scarce because of a record-long government shutdown, this could prove to be one of the most contentious decision in years.

"There are now high expectations of a ’hawkish cut’ at Wednesday evening’s FOMC decision," said analysts at ING, in a note.

Data released earlier Tuesday has added to the potential that the FOMC policymakers try to play down expectations of another rate cut in the new year, as U.S. private payrolls increased by 4,750 on average per week in the four weeks ending on November 22, according to a weekly update of the monthly ADP National Employment Report.

Additionally, U.S. job openings increased marginally in October, rising 12,000 to 7.670 million, the Labor Department’s Bureau of Labor Statistics said.

The BLS is due to release its closely-monitored nonfarm payrolls report for November on December 16, after it was delayed by a record-long U.S. government shutdown. The October unemployment rate will also never be known, after having hovered around a four-year high of 4.4% in September.

Nvidia, Warner Bros Discovery in spotlight

However, most eyes are likely to be on Nvidia (NASDAQ:NVDA) after President Donald Trump stated, via a Truth Social post, that he will allow the company to sell its H200 AI chips to approved customers in China and other countries, albeit with a 25% tariff and with restrictions to ensure U.S. national security.

Trump said he had informed Chinese President Xi Jinping of his decision, to which Xi “responded positively.”

Nvidia’s H200 chip was unveiled in 2023 as the successor to the company’s H100 chip, and is estimated to be about six times more powerful than the H20, the most advanced AI chip that Nvidia is currently allowed to sell to China.

Nvidia chips are widely used by Chinese companies in AI development, with Trump’s Monday announcement presenting a path for higher chip sales for the world’s most valuable company.

Additionally, Warner Bros Discovery (NASDAQ:WBD) has another suitor, as just days after streaming titan Netflix (NASDAQ:NFLX) was named the winner of a bidding war for the studio, Paramount Skydance (NASDAQ:PSKY) said it had launched a hostile bid worth $108.4 billion.

The amount would surpass the $72 billion equity deal Netflix had secure for Warner’s television, film studios and streaming assets, and notably, Paramount’s rival bid would be for all of Warner, including its cable television properties.

Energy stocks, meanwhile, were also in the ascendency, led by Exxon Mobil Corp (NYSE:XOM) after the latter upgraded its earnings and cash flow outlook for the period spanning between 2024 and 2030.

On the earnings front, meanwhile, AutoZone Inc (NYSE:AZO) was 1% lower, but well above session lows even after reporting quarterly results that missed analyst estimates.

Toll Brothers Inc (NYSE:TOL) also came under pressure following a 3Q earnings miss.

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Peter Nurse, Ambar Warrick contributed to this article

Investing.com -- TKO Group (NYSE:TKO) shares fell 2.4% after the company provided margin guidance during a presentation at a UBS conference that appeared to fall short of analyst expectations.

During the latter part of the presentation, TKO executives stated they expect margins "in excess of 35%" next year. This outlook appears to be below the Bloomberg consensus estimate, which shows fiscal 2026 adjusted EBITDA margin expectations of 37.46%.

The company also addressed its M&A strategy, noting it’s "not hunting for new properties at the moment," suggesting a pause in expansion efforts through acquisitions.

TKO further discussed an upcoming high-profile UFC event scheduled to take place at the White House on June 14. Executives described the event as "a spectacle on steroids" compared to previous productions at venues like the Sphere. However, they acknowledged that "there will be no ticket sales," which "will hurt us financially."

President Donald Trump, speaking to reporters at the Kennedy Center Honors on December 8, indicated the White House event will feature eight or nine championship fights. "The biggest fights they’ve ever had," Trump said. "Every one’s a championship fight. And every one’s a legendary type of fight."

The stock’s decline suggests investors may be concerned about both the margin outlook and potential revenue impact from the ticketless White House event.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.