ITV gets upgrade from Standard & Poor's
ITV, the commercial television network, has received an upgrade from Standard & Poor's (S&P) rating services with its outlook moving to 'positive' from 'stable'.
ITV, the commercial television network, has received an upgrade from Standard & Poor's (S&P) rating services with its outlook moving to 'positive' from 'stable'.
S&P said the rating reflected its revised assessment of ITV's business risk profile to 'satisfactory' from 'fair', following steady and significant improvement at its broadcasting operations and solid performance at its content production business, ITV Studios.
The rating agency explained: "We revised ITV's business risk profile to 'satisfactory' because its overall audience and advertising market shares in the UK free-to-air TV market have stabilised and improved, and the company posted a sound EBITDA [earnings before interest, tax, depreciation and amortisation] margin that exceeded 20% over the last two years.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"In addition, we see solid growth and margins at ITV's production arm, ITV Studios, which further diversify the business away from cyclical advertising revenues. We consider ITV's business risk profile to be in line with that of its main broadcasting peers."
ITV has been one of the best performers in the FTSE 100 in 2012 and is near year-highs.
In July, ITV disclosed half-year results that showed revenues rising by 10% to £1,130m, adjusted profits increasing by 15% to £235m and an interim dividend that was double that of 2011 at 0.8p per share. The company also revealed a strengthened balance sheet, with net cash of £92m.
Gross debt repayable was £499m at June 30th, having reduced by £281m since December 2011, primarily as a result of bond repurchases.
In July, it improved its financial flexibility by obtaining a committed £250m revolving credit facility, provided by a handful of long-term relationship banks, which at that time remained undrawn.
ITV's next trading update will be published on November 13th.
CM
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Revolut launches its first stocks and shares ISA with BlackRock and Vanguard ETFs
A year after getting its UK banking licence, Revolut is now launching its first stocks and shares ISA with a suite of exchange-traded funds (ETFs) from BlackRock and Vanguard.
-
What does Trump’s ‘Big Beautiful Bill’ mean for the US economy?
Donald Trump’s budget bill will slash taxes, but is expected to add at least $3 trillion to US national debt