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# Warner Music’s $3 Billion Debt Upgraded To B1 “High Default Risk”
- URL: https://www.hypebot.com/warner-music-3-billion-debt-upgraded-to-b1-high-default-risk/
- Published: 2016-06-27T11:58:00.000Z
- Updated: 2016-06-27T11:58:00.000Z
- Description: When Len Blavatnik's Access Industries bought Warner Music Group in 2011, it took on $3.05 billion in expensive debt. Now investment ratings firm Moody's has upgraded WMG's outlook slightly from B2. Continue reading [https://www.hypebot.com/hypebot/2016/06/warner-music-3-billion-debt-upgraded-to-b1-
- Author: Bruce Houghton
- Tags: Major Labels, Music Business, A+E Networks, Aid, Amazon.com, Appellate court, Argentina, Credit rating, Google, Moody's Investors Service, Warner Music Group, YouTube, #wp, #wp-post, #Import 2026-01-21 10:22

[![WMG-W-logo](http://hypebot.typepad.com/.a/6a00d83451b36c69e201b8d1fdc6ba970c-150wi "WMG-W-logo")](http://hypebot.typepad.com/.a/6a00d83451b36c69e201b8d1fdc6ba970c-popup?ref=hypebot.com)When **Len Blavatnik'**s Access Industries bought **Warner Music Group** in 2011, it took on **$3.05 billion** in expensive debt. Now investment ratings firm **Moody'**s has upgraded WMG's outlook slightly from **B2 to B1**, but with a **"high default risk."**

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Moody's Investor Service has upgraded Warner Music Group Holdings business credit rating slightly from B2 to B1, which the rating service describes as a "highly speculative' investment. And while the world's third largest music group's outlook is considered "stable," Moody says that WMG's risk of defaulting on its loans is "high" (B1-PA).[![Wmg](http://hypebot.typepad.com/.a/6a00d83451b36c69e201b7c874017a970b-200wi "Wmg")](http://hypebot.typepad.com/.a/6a00d83451b36c69e201b7c874017a970b-popup?ref=hypebot.com)This slight upgrade from Moodys comes after 3.2% overall industry growth in 2015, following years of decline. Looking forward, Moody's believes that WMG profits could grow "as a result of lower costs associated with online music subscription and advertising-supported streaming revenue which is now its largest and fastest growing revenue source, underpenetrated markets worldwide for paid music streaming consumption and rising demand for WMG's music content."**$3.05 Billion In Debt At Interest Rates As High As 13.75%**But WMG is still saddled with $3.05 billion in debt. Most of it is being carried at an average interest rate of 6.5% and comes due in the next 4 to 6 years. But $100 million of the debt, which come due in 3 years carries a whopping 13.75% interest rate. The prime business borrowing rate currently sits at near record lows of 2.70%, with many companies able to borrow at prime +1 or 3.70%

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