Liberty Media Corp.’s credit ratings were cut to junk by Moody’s Investors Service, which cited concerns that the company will add debt to make acquisitions.
The long-term debt rating was reduced one level to Ba1, a step below investment grade, from Baa3, Moody’s said in a statement Thursday. Douglas County-based Liberty, the cable-television holding company run by billionaire investor John Malone, has about $12 billion of debt affected by the downgrade, Moody’s said.
Liberty’s strategy may involve putting money into riskier investments such as “developing stage” companies, Moody’s said.
Malone, 64, who is taking over as chief executive, said earlier this month that he planned to use debt to buy assets. Malone is replacing Robert Bennett, who is leaving to head Discovery Holdings Inc., which Liberty spun off July 21.
Liberty shares fell 4 cents to $8.25 after the close of regular trading, when they stood at $8.29, down 11 cents in New York Stock Exchange composite trading. The shares have declined 11 percent this year.
