Fitch Ratings-Rio de Janeiro-25 November 2025:
Fitch Ratings has affirmed Globo Comunicacao e Participacoes S.A.’s (Globo) Long-Term Foreign Currency Issuer Default Rating (IDR) and USD unsecured notes at ‘BB+’. In addition, Fitch has affirmed Globo’s Long-Term Local Currency IDR at ‘BB+’ and National Scale rating at ‘AAA(bra)’. The Rating Outlook is Stable.
Globo’s ratings reflect its conservative financial policy, as shown by its net cash balance, and its highly competitive position within the Brazilian media sector. Globo has strong local content, including live events and shows, a market characterized by free-to-air TV as the dominant advertising platform, and a multiplatform and direct-to-consumer strategy. However, it has lower profitability compared with its global investment-grade peers in the sector and is exposed to the challenging industry trend toward audience fragmentation across digital and linear distribution platforms, along with a declining pay-TV subscription base in Brazil.
Key Rating Drivers
Net Cash Position: Globo’s rating benefits from its strong net cash position, which fully covers its total debt, providing significant financial flexibility. The company has one of the region’s strongest financial structures, with Fitch’s cash and equivalents of about BRL12 billion, substantially higher than its total debt of BRL5.5 billion as of 2Q25. Fitch expects Globo to maintain a solid cash position over the rating horizon without incurring significant debt.
Robust Domestic Business Position: Globo’s strong business position as Brazil’s leading media company is a key factor in its ratings. The company broadcast network comprises five television stations and more than 100 independent affiliates that distribute Globo’s content, with TV broadcasting audience share of approximately 33%. Globoplay is expanding its subscriber base through investments in content, new production, partnerships and bundled offerings, all of which are expected to remain strategically important for Globo.
Challenging Sector Environment: Globo faces intense competition from other platforms for viewers and advertisers. The media landscape has been affected by increasing viewership fragmentation due to shifting consumer preferences for on-demand and over-the-top viewing, as well as the growing number of offerings from new media players. The Brazilian pay-TV market has contracted, falling to 7.9 million subscribers in 2Q25 from 19.5 million in 2014. To address these market changes and the decline of its traditional TV broadcasting business, Globo is investing in live events, local production, its digital strategy, and the Globoplay subscription video-on-demand service.
Increased Diversification: Fitch considers the acquisition of Eletromidia, Brazil’s largest out-of-home (OOH) media company, as credit positive for Globo, as it increases business diversification away from secular declining segments. Other traditional media are facing pressure from the shift toward digital media, but OOH is benefiting from these secular shifts as conversion of static OOH advertising to digital boards provide incremental revenue opportunities. This segment contributed to more than 20% of Globo’s EBITDA in 1H25, and this positive diversification of cash generation will allow the company to partially offset the advertising industry declining trend.
Resilient Profitability: Globo’s EBITDA margin has improved since 2022, and Fitch expects it to remain in the high single digits over the next two years amid sector headwinds and streaming scale-up costs. Continued OOH growth offers structural upside to consolidated margins, as this segment has higher profitability along with higher capital intensity. Fitch projects EBITDA of about BRL 1.7 billion in 2025 and BRL1.8 billion in 2026 and expects Globo’s pre-dividend FCF margins to remain strong, supported by the adequate operating performance and manageable capex.
Peer Analysis
Globo is well-positioned relative to its peers in terms of its financial profile. Compared with U.S.-based investment-grade media and entertainment companies like Comcast Corporation (A-/Stable) and The News Corporation (BBB/Stable), Globo has lower profitability, lacks geographic diversification, and relies heavily on cyclical advertising revenue, especially with the declining pay-TV penetration. However, this lack of cash flow diversification is offset by Globo’s significantly stronger capital structure and strong domestic market position.
Key Assumptions
–Revenue in the BRL18 billion to BRL19 billion range in 2025-2026;
–High single-digit EBITDA margins in 2025-2026;
–Average annual capex of around BRL400 million to BRL450 million;
–No material incremental debt added to the capital structure.
–Dividend of about BRL1.8 billion in 2025.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
— A downgrade of Brazil’s Foreign-Currency IDR would likely result in a negative rating action for Globo’s Foreign Currency IDR and U.S. dollar-denominated notes;
— A downgrade could occur with significant deterioration in the company’s strong liquidity, resulting in positive net debt amount;
— Persistent negative operating EBITDA margins.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
— Significant improvement in EBITDA margins in line with global investment-grade companies;
— Sustained positive FCF excluding net interest expense;
— Improvement in the industry fundamentals resulting in a stabilization of its pay-TV subscribers base.
Liquidity and Debt Structure
Globo has a net cash position, with total debt of BRL5.5 billion and Fitch’s adjusted cash and equivalents of BRL11.9 billion as of June 2025. Most of the company’s debt consists of three U.S. dollar-denominated senior unsecured notes due in 2027, 2030 and 2032, while minor part is Eletromidia’s two BRL-denominated debentures due 2029 and 2030. Globo hedges its operational and financial exposure to foreign currency considering a 24-month period ahead and has entered a swap to the Brazilian interbank deposit interest rate for its notes due 2030 and 2032 notes to maturity.
Issuer Profile
Globo is the largest media group in Brazil, operating through the leading broadcast television, pay-TV and out-of-home networks. The company also owns a streaming platform (Globoplay). Globo is owned by the Marinho family.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Click here to access Fitch’s latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in our credit analysis. Fitch’s macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations
The highest level of ESG credit relevance is a score of ‘3’, unless otherwise disclosed in this section. A score of ‘3’ means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch’s ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch’s ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
Globo Comunicacao e Participacoes S.A.; Long Term Issuer Default Rating; Affirmed; BB+; Rating Outlook Stable
; Local Currency Long Term Issuer Default Rating; Affirmed; BB+; Rating Outlook Stable
; National Long Term Rating; Affirmed; AAA(bra); Rating Outlook Stable
—-senior unsecured; Long Term Rating; Affirmed; BB+
Contacts:
Primary Rating Analyst
Ricardo Junqueira,
Associate Director
+55 21 3957 3619
Fitch Ratings Brasil Ltda.
Av. Barão de Tefé, 27 – Sala 601 Saúde
Rio de Janeiro, RJ 20220-460
Secondary Rating Analyst
Johnny da Silva,
Senior Director
+1 212 908 0367
Committee Chairperson
Alberto Moreno Arnaiz,
Senior Director
+52 81 4161 7033
MEDIA RELATIONS: Maggie Guimaraes, São Paulo, Tel: +55 11 4504 2207, Email: [email protected]
Additional information is available on www.fitchratings.com
Applicable Model
Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).
Corporate Monitoring & Forecasting Model (COMFORT Model), v8.2.0 (1)
ADDITIONAL DISCLOSURES
Dodd-Frank Rating Information Disclosure Form
Solicitation Status
Additional Disclosures For Unsolicited Credit Ratings
Endorsement Status
Endorsement Policy
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTPS://WWW.FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, THE FOLLOWING HTTPS://WWW.FITCHRATINGS.COM/RATING-DEFINITIONS-DOCUMENT DETAILS FITCH’S RATING DEFINITIONS FOR EACH RATING SCALE AND RATING CATEGORIES, INCLUDING DEFINITIONS RELATING TO DEFAULT. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. DIRECTORS AND SHAREHOLDERS RELEVANT INTERESTS ARE AVAILABLE AT HTTPS://WWW.FITCHRATINGS.COM/SITE/REGULATORY. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE OR ANCILLARY SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF PERMISSIBLE SERVICE(S) FOR WHICH THE LEAD ANALYST IS BASED IN AN ESMA- OR FCA-REGISTERED FITCH RATINGS COMPANY (OR BRANCH OF SUCH A COMPANY) OR ANCILLARY SERVICE(S) CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH RATINGS WEBSITE.
Copyright © 2022 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch’s factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third- party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch’s ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed.
The information in this report is provided “as is” without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch reports have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed or withdrawn at any time for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers.
For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an Australian financial services license (AFS license no. 337123) which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001
Fitch Ratings, Inc. is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (the “NRSRO”). While certain of the NRSRO’s credit rating subsidiaries are listed on Item 3 of Form NRSRO and as such are authorized to issue credit ratings on behalf of the NRSRO (see https://www.fitchratings.com/site/regulatory), other credit rating subsidiaries are not listed on Form NRSRO (the “non-NRSROs”) and therefore credit ratings issued by those subsidiaries are not issued on behalf of the NRSRO. However, non-NRSRO personnel may participate in determining credit ratings issued by or on behalf of the NRSRO.
