Comcast’s Credit May Be Downgraded After Split, Moody’s Says

Many of Comcast‘s long-impeccable credit ratings have been put under review for a potential downgrade by Moody’s due to the company’s planned split into two separate companies.

A report issued Tuesday by the major ratings agency said the revenue mix that has sustained Comcast for 15 years will no longer be in place once the split is completed in mid-2027. The result will be two more focused entities – one with the entertainment assets of NBCUniversal and Sky, and the other with the cable and broadband portfolio that has long been a foundational element of Comcast.

The operating environment confronted by the company has significantly changed, according to the report by Neil Mack, VP and senior analyst in Moody’s corporate finance group, and Lenny J. Ajzenman, Associate Managing Director

“Comcast’s reduced revenue diversification following the planned public spin-off of NBCUniversal and Sky assets concentrates the remaining entity’s exposure to intensifying competition in broadband end markets,” Mack said in a statement provided to Deadline. “The credit resilience of cable broadband business models remains under pressure due to debt leverage increasingly in conflict with negative operating trends, which is raising investor concerns about appropriate debt leverage tolerance levels in lower-growth end markets.”

Comcast has about 29 million residential broadband customers, 10.9 million pay-TV customers and 46 million subscribers to streaming flagship Peacock.

The spin-off of most of NBCU’s cable networks into a stand-alone company, Versant Media, has helped the balance sheet, but Moody’s sees it as presenting challenges at the same time.

The company’s enviably low debt-to-earnings ratio of 2.7x for the 12 months ended March 31 is “in line with year-end 2025,” prior to the Versant spin. Still, “debt leverage will be pressured in 2026 from the loss of EBITDA and cash flow tied to the declining but high-margin businesses spun-off as Versant,” the report said. “While the company’s excellent liquidity and financial flexibility are supportive of the current credit profile, the negative secular pressures buffeting Comcast’s broadband-focused Connectivity and Platforms segment are heightening overall business risks.”

Comcast shares, which rose 4.5% on Monday after the split news, were up another fraction toward the end of Tuesday’s trading session.