The current state of the stock market has been worrisome for investors and corporations alike. However, Live Nation Entertainment (LYV) has been particularly impacted amid the coronavirus pandemic with company stock plunging with the widespread halting of the live event industry. Now, Live Nation stock is facing a potential downgrade as the market continues its slump.
LYV secured a BB-minus grade by the S&P Global Ratings, which the agency defines as “less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions.” The company’s ongoing woes caused by the live event industry’s paused status now leaves an opportunity review the rating and possibly downgrade it further.
“While the extent and duration of the impact on the live events industry are uncertain, we believe Live Nation Entertainment Inc.’s operating performance could be hurt by the growing number of postponed events, lower-than-expected attendance, or any future cancelations,” S&P Global Ratings shared in a statement obtained by Market Watch.
Live Nation CEO Michael Rapino reacted to the recent downturn by investing $1 million in LYV stock after shares fell to $38.98 apiece. Rapino had previously downplayed any major impact the virus would have on the industry, claiming that the business doesn’t fully ramp-up until the summer months.
As of this writing, Live Nation shares have dropped 32 percent in the past twelve months. LYV shares last closed at $36.23, down significantly from last month’s price of $76.08 a share.
Stay up-to-date on the current market figures of Live Nation stock and other industry players here.
Last Updated on March 17, 2020 by Kelly Byrnes