S&P upgrades News Corp rating on low leverage, strong growth
Investing.com reports S&P Global Ratings upgraded News Corp (NASDAQ:NWSA) to BBB from BBB-, citing sustained low leverage and strong operating momentum. S&P said debt to EBITDA is about 1x, expected to fall to 0.8x in FY2027 and 0.6x in FY2028. It projects about $800M free operating cash flow in FY2027 and near $1B in FY2028.
How this was made
The 30-second read
Why it matters
Lower leverage (about 1.0x to 0.9x by June 30, 2026) and expected further decline to 0.8x in fiscal 2027 and 0.6x in fiscal 2028 underpin the upgrade, alongside cash levels and forecast free operating cash flow.
Market read
For traders, the actionable element is the fresh credit-rating upgrade with explicit leverage and FCF expectations, which can move credit spreads and equity sentiment.
What to watch
Leverage trajectory depends on EBITDA expansion and cash accumulation; any segment softness (Digital Real Estate or Dow Jones) could slow the path to the forecast 0.6x leverage by fiscal 2028.
Background
S&P Global Ratings upgraded News Corp’s credit rating to BBB from BBB- and set a stable outlook, citing leverage improvement and operating momentum.
Ticker impact
S&P Global Ratings upgraded News Corp to BBB from BBB- citing sustained low leverage and stronger operating momentum, with stable outlook.
Mildly positive bias for the next few sessions, with follow-through depending on broader rates and media credit spreads.
The article provides specific leverage and cash/FCF expectations tied to the rating action, which is a concrete catalyst, but it lacks a new earnings/guidance release or immediate financial datapoint beyond the rating rationale.
Market effects
Credit-quality upgrades in media can modestly tighten sector credit spreads and improve relative attractiveness versus higher-leverage peers.
Primarily US credit and equity sentiment, with limited direct regional spillover beyond rates-sensitive positioning.
Rating actions can influence global bond pricing for issuers with international investor bases, but the article is US-equity focused.
Counterpoint
A rating upgrade may already be partially priced, and the stable outlook suggests limited upside surprise versus a further notch higher.
Key entities
- issuerNews Corp
Media company receiving the S&P Global Ratings upgrade to BBB with stable outlook.
- rating_agencyS&P Global Ratings
Cited low leverage, operating momentum, and revised governance modifier assessment as drivers of the upgrade.
