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Paramount pledges debt cut post $110B deal

Watch: Monitor S&P's final credit rating decisions and any operational steps Paramount takes to reduce debt and reassure lenders.

Paramount is financing its $110 billion Warner Bros. acquisition with about $50 billion of debt. CEO David Ellison promised rating agencies to reduce leverage at the combined company, a pledge made public after pressure. S&P plans to downgrade the post-merger credit rating by one notch to BB, moderating a potential two-notch drop due to the controlling family's support from Larry Ellison.

Lower leverage pledges and family backing limit downgrade severity, improving financial stability prospects after a heavy debt load from this major media merger.

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