Donald Trump has already moved to try and protect Hollywood Studio’s now it’s been revealed that Warner Bros Discovery has been downgraded to below investment grade by S&P Global Ratings.

The Company whose content has been a mainstay on Australian TV and Foxtel and Stan’s streaming operations currently holds approximately $38 billion in outstanding debt, including $31 billion in corporate bonds categorized as high-grade debt.

The downgrading markes a significant shift for the media and entertainment powerhouse.

According to a report released last night S&P lowered Warner Bros.’ issuer credit rating to BB+, placing it in junk territory—one notch below the lowest rung of investment-grade ratings (BBB-).

The downgrade comes as Warner Bros. faces persistent revenue and cash flow declines within its linear television segment, an area that has struggled amid shifting consumer preferences toward streaming platforms.

Analysts claim that a downgrade to junk status can have major financial implications, including increased borrowing costs and reduced investor confidence.

Companies that fall below investment grade often have a harder time securing favorable loan terms, which could make Warner Bros.’ already significant debt load even more challenging to manage.

Recently a US arbitrator found in favor of WBD and awarded the studio roughly US$125 million after a fall out with Village Roadshow.

The arbitrator ruled that in 2023 that Village Roadshow breached a series of deals involving the Matrix films by failing to pay its $107 million share of the co-financing arrangement.

The debt remains unpaid because Village Roadshow was recently declared as being bankrupt.