S&P Downgrades Paramount's Debt to Junk Status on Cash Flow Woes, Raising Prospects of Asset Sales

S&P downgraded Paramount's debt rating to junk status due to ongoing free cash flow issues and high debt levels
S&P expects Paramount's cash flow-to-debt ratio to remain below 10% and leverage ratio above 3.5x through 2025
Downgrade increases likelihood of buyers emerging for Paramount assets now that debt can be avoided
Shari Redstone prefers not to sell Paramount pieces but favors merger with Skydance Media
S&P outlook of "stable" based on assumption streaming losses will improve by over $700M