Viacom's New Management In A Dilemma Over Debt

Moody’s and S&P have warned of a rating downgrade for Viacom as the Debt/Equity ratio of the company has reached unjustifiably high levels of 3.47. The financial position of the company has deteriorated over the past three years as it issued enormous amount of debt to finance share buybacks. Its cable networks and movie businesses have failed to generate sufficient cash flow due to declining ratings and profitability. To add to that, the company has recently gone through a management scuffle. ...