Warner Bros. found being downgraded to BB+ or junk bond status for 2025 and 2026, while S&P Global is as Hollywood Studio continues to move to the streaming space, while Linear TV weaknesses are lowered on the linear TV weakness.

Rating companies have consistently maintained their views on WBD, but pointed out that the credit metrics can generally explain their lower ratings on speculative bonds. "We have lowered our forecasts for 2025 and 2026 due to the ongoing challenges in the WBD linear TV network segment, which we predict will offset growth in its studio and streaming segments," S&P Global said in a statement.

Like its industry competitors, WBD is under pressure from Wall Street across the industry challenges, including advertising softness and cutting ropes as investors are looking for returns on expensive transitions from traditional linear TV networks to the world of digital streaming.

The possibility of WBD conducting major disagreements in the company - WB Studios may pair with the renamed HBO Max, and the Discovery Linear Cable channel was spinning into a separate company - did not fuel the rating company.

S&P Global has not lowered its rating to any potential divergence in the company, as it has not been officially announced yet. However, rating companies have added “separation may stress ratings because it weakens our perception of individual businesses, especially global linear network companies, due to secular pressures in the linear television ecosystem.”

WBD has begun restructuring the company in a bid to potentially spin off its traditional TV assets. In December 2024, the studio said it had redesigned its corporate structure to a global linear television division, separate from the streaming and studio divisions.

WBD added that it has begun early steps toward a new company restructuring and completed it in mid-2025. The company's possible split in WBD will release a plan to separate its lower-margin wired network from movie and TV studio entertainment companies and Parks Business after rival Comcast released plans.

Although the cable business used to be a cash driver for studios, TV channels have recently dragged down earnings, and investors have been trapped in troubled companies that are suppressed by bundled channels that are linked to bundled channels that quickly lose consumers who are lost to consumers relative to personal streaming services.

As a result, S&P Global analysts said they hope WBD will “moderately reduce leverage” or its borrowings this year and next year by generating cash flow.