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U.S. Media & Entertainment Industry Rebooting The U.S. Media Sector In A Post Pandemic World

January 2020 Media & Entertainment Group: Naveen Sarma, Senior Director Jawad Hussain, CFA, Director Vishal Merani, CFA, Director Rose Oberman, CFA, Director Samantha Stone, Director U.S. Economics | Recession Takes Hold

End of the cycle. The COVID-19 pandemic has brought the longest economic expansion in U.S. history to an abrupt end. In our baseline, we forecast GDP will drop by 3.9% in 2020, down from our pre-virus December forecast of a 1.9% gain and our June forecast of a 5.0% drop.. Short and sharp. The COVID-19 recession was on par with the economic losses seen during the Great Recession, but over a much shorter time frame. In our deep recession scenario, downturn reemerges in the fourth quarter as COVID-19 case flare up and the bridge the government began building with stimulus only made it halfway to the other side. Policy response. As this sluggish recovery unfolds, three risks remain: no coronavirus vaccine yet available as U.S. heads into flu season, no fiscal stimulus, and trade tensions with China on the rise.

2 Corporates | Diverging Paths to Recovery

– Higher leverage incurred during the pandemic will lead to a slow recovery of credit metrics in many sectors. – Low interest rates and the long road to recovery puts financial policy as a key factor and variable that could further shape and delay the recovery timeline.

3 | Downgrade Potential By Sector

Current Negative Bias (Oct. 31, 2020) 5-YearAverages

Oil &Gas (59) Automotive(32) 64% 38% Media/entert(159) 60% 20% Retail(59) 59% Capital goods (71) 24% 51% Aerospace/defense(24) 31% – Echoing the global trends, North American sectors including oil and gas, Transportation(31) 51% auto, media, and lodging face the highest downgrade risk in the present 23% time. Consumer products(112) 48% 20% CP&ES(51) 48% These sectors haveseen: Metals/mining/steel(26) 16% Forest(28) 45% – Volatile market conditions affectingtheir business conditions (auto, oil 26% and gas, lodging, as well asretail). Financial institutions (56) 44% Health care(50) 20% – Structural dislocation in the autosector before the pandemic. 39% Telecommunications(17) 22% – Effects of travel bans and social distancing measures on the business Utilities(40) 37% 12% prospects of issuers in leisure, tourism and travelsectors. Home/RE(22) 36% High technology(32) 21% 32% Insurance(22) 18% 21%25% 24% 16% 17% 10% 13%17% 17% 9%

0% 20% 40% 60% 80%

Data as of Oct. 31, 2020 and include sectors with more than five issuers only; excludes Sovereign. Source: S&P Global Ratings.

4 U.S. Media & Entertainment | COVID-19 Related Rating Actions

Pre-COVID as of Feb 1, 2020 Current view as of November 25, 2020 Source: S&P Global Ratings

U.S. has taken over 100 COVID-19 related ratings actions since February – 15% of ratings ‘CCC+’ or below (compared to 8% pre-pandemic) – Three investment grade ratings actions – Expedia (BBB-/Negative/--) and Walt Disney (BBB+/Neg/A-2 (twice) – COVID-19 related defaults – AMC Entertainment and Cineworld – 47% of ratings have negative outlooks or CW Neg (20% prior to crisis), signaling further downside risk

5 U.S. Media & Entertainment | Key 2021 Industry Themes & Concerns Issue What’s The Big Deal? Sectors / Companies Affected

Uncertainty as to whether national television remains the premium medium trends and recalibration • Transit Recovery of lagging sectors, especially transit of secular trends • Local (TV, outdoor, radio) How do local markets perform – recovery or set back? • Broadcast networks Is it better win but overpay OR lose but salvage financial metrics? 2021/2022 credit metrics • TV station operators Winners will likely face weaker credit metrics due to depressed EBITDA and cash flow Renewal of NFL broadcast contract • AT&T What does this do to relationship between broadcast networks and TV station operators? – Already elevated credit metrics • Digital platforms as many companies issued debt S&P targeting return to normalcy in 2H21 though gov’t imposed restrictions may delay recovery to shore up liquidity during crisis Pace of recovery for out of home • Theme parks, live events, Uncertain how consumers will behave (roaring twenties or bunker mentality?) sectors concerts, theaters – Streaming initiatives will depress Reaction will determine fate of those companies with elevated leverage margins and cash flows until Shrinking theatrical window • studios platforms gain scale and reach Film windowing Day and date strategy • Exhibitors cash flow breakeven Rebuilding fractured relationship between film studios and exhibitors – Streaming strategies in full display with launches by all major media companies (finally) Will the recovery come in time for Pivot to a streaming world Differentiation in performance (ie, subscriber growth) of various streaming services • Media companies low rated (B/CCC) companies? How long before we pick winners & losers? Was improved pace in 2020 an anomaly or is video penetration finding a new floor ? Pace of cord cutting • Television Impact on television compounded by declining ratings Social media platforms under fire from regulators, legislators, & courts Regulation of social media Potential reform of section 230 of the1996 Communications Decency Act • Social platforms Antitrust lawsuits against and Google Pay-TV distributors versus out of favor linear networks • Television Distribution versus content New powers in distribution (, , Apple) • Diamond Sports Consolidation to achieve scale – scale is increasingly key differentiator M&A Rationalizing noncore assets within existing portfolios and adding new capabilities and assets • All of media Aided by availability of low cost financing and excess cash on the balance sheet

6 U.S. Media & Entertainment | Near-Term Recovery From Pandemic

• Advertising-based media – Current state: TV better than expected, radio in line, and outdoor weaker due to transit – Near term advertising trending positive (negative yr/yr but sequentially improving) for all media except transit o Return of sports, especially NFL o Scatter market pricing has returned to pre-COVID levels o 2020/2021 TV upfront nearly completed with prices up and volumes down o Record political advertising in 3Q and 4Q masks underlying performance of local TV o Solid growth in digital advertising – April was only declining month

• Out of home entertainment – Current state: Movie theaters, theme parks, & some sports events have re-opened but with limited attendance, live events (concerts, theater, conferences) still closed – Uncertain return path to normalcy: o Timing will vary depending on type of business and geographic location o Lifting of gov’t mandated social distancing measures could help pace of recovery but lingering consumer fears will ultimately affect return to normalcy o Broad global second wave or local / regional virus flair ups could result in volatility o S&P assumes vaccine will be widely available by middle of 2021

7 U.S. Media & Entertainment | Under Pressure From COVID-19 And Recession Media Subsectors Ratings impact

Long Term Revenue EBITDA Credit Impact If No Impact to Decline - - Decline - - Revenue Metrics Vaccine In Business 2021 versus 2021 versus Recovery To Recover to COVID- 19 Recession 2021 Profile 2019 2019 2019 Levels 2019 Levels Data/professional publishers Low Low Low Neutral >=2019 >=2019 Little impact Little impact Video gaming Low Low Low Positive >=2019 >=2019 Little impact Little impact Music publishing Low Low Low Neutral >=2019 >=2019 Little impact Little impact Streaming providers Low Low Moderate Positive >=2019 >=2019 Little impact Little impact Local TV stations Low Moderate Moderate Neutral 0% to 10% 0% to 10% 1H21 Little impact Moderately Broadcast networks Moderate/Low Moderate Moderate 0% to 10% 0% to 10% 2021 2021 Negative Cable TV networks Moderate/Low Moderate Moderate Negative 10% to 20% 10% to 20% 2021 2021 Moderately Radio stations Low High Low 10% to 20% 10% to 20% Never 2022 Negative E- commerce services (non travel) Moderate/Low Moderate/Low Low Neutral >=2019 >=2019 2021 2021 Ad- supported online content Moderate/Low Moderate/Low Moderate/Low Positive >=2019 >=2019 Little impact Little impact platforms

Ad agencies and marketing services Moderate/Low Moderate Moderate Neutral 0% to 10% 0% to 10% 2H21 2021 companies

Printing Moderate Moderate/Low Moderate Neutral 10% to 20% 10% to 20% Never 2022+ Educational publishing Moderate/High Moderate Moderate Neutral 10% to 20% 10% to 20% Never Never Magazines & Newspapers Moderate/Low High Moderate/Low Neutral 20% to 30% 30% to 40% Never 2022 Outdoor Moderate/High Moderate/High Moderate Neutral 20% to 30% >=50% 2023 2023 Film and TV programming production Moderate/High Moderate/Low High Neutral 10% to 20% 10% to 20% 2022 2022 Trade shows and conferences High Moderate/High High Neutral >=50% >=50% 2023 2023 Motion picture exhibitors High Low High Negative >=50% >=75% 2022 2022 E- commerce services (travel) High Moderate High Neutral >=50% >=90% 2023 2022+ Live events High Moderate High Neutral >=40% >=40% 2022 2023 Theme parks High High High Neutral >=50% >=90% 2022+ 2023

8 U.S. Media & Entertainment | Revenue Exposure To COVID-19 (2019 Mix)

Affiliate Advertising Merchandise SVOD Other Theme Content Cable / Company Theatrical licensing and Publishing SMB Total Total parks licensing Total Telecom Total retail AMC Networks 66% 32% 0% 0% 0% 0% 0% 1% 0% 0% 0% AT&T 7% 4% 0% 4% 3% 0% 0% 0% 79% 0% 2% Charter 0% 3% 0% 0% 0% 0% 0% 0% 88% 8% 0% 8% 13% 5% 8% 1% 0% 0% 0% 56% 7% 1% Discovery 43% 54% 0% 0% 0% 0% 0% 0% 0% 0% 2% Fox Corp 48% 43% 0% 0% 0% 0% 0% 0% 0% 0% 9% Lions Gate 35% 0% 0% 24% 38% 0% 0% 1% 0% 0% 2% 0% 0% 0% 0% 0% 0% 0% 99% 0% 0% 1% ViacomCBS 31% 40% 0% 23% 2% 0% 3% 0% 0% 0% 1% Walt Disney 23% 15% 29% 11% 7% 6% 0% 3% 0% 0% 5%

Content licensing includes TV/SVOD licensing and home entertainment Comcast SMB exposure includes all of business services Last annual reports for all companies Disney of September 28, 2019. Does not fully consolidate 21CF AMC, AT&T, Charter, Discovery, Netflix, and ViacomCBS as of December 31, 2019 Fox as of June 30, 2020 Lions Gate as of March 31, 2020 Source: company reports, S&P estimates

9 U.S. Media & Entertainment | Longer Term Impact Of Pandemic

• Consumer and business behavior changes after every significant crisis – the COVID pandemic is no different • Secular trends accelerating – Audience fragmentation – Accelerating decline of video bundle (cord cutting) – Decline of general entertainment and premium cable networks – Advertising mix shifts further towards digital platforms – Uncertainty surrounding national television as the premium medium • Every crisis brings opportunities – In-home entertainment – video gaming, streaming video services – New monetization windows (PVOD) / shortened theatrical release window – Cost optimization / cost reduction • Long term impact to credit ratings still to be determined – In what condition will businesses/companies emerge from this pandemic – S&P views on media sectors could change, potentially resulting in revised ratings thresholds

10 U.S. Media & Entertainment | 2021 Advertising Recovery Driven By Digital

Excluding Digital, Advertising Doesn't Return to 2019 Level Segment 2020f 2021e 140%

Digital 5.0% +14.0%

130% Local TV (incl +5.7% -5.2% political

120% Network TV -10.0% +10.9%

Cable TV -12.5% +8.2% 110%

Total TV -10.0% +5.1% 100% Radio -23.5% +18.0%

90% Outdoor -21.5% +17.5% Revenue Revenue as a %2019 of Levels

Advertising (ex -19.9% +6.9% 80% digital)

Total advertising -9.4% +10.3% 70% 2019 2020 2021 2022 U.S. GDP -4.0% +3.9% Digital Local television (incl. political) Network television* * Radio Outdoor Advertising, excluding Digital Total advertising

Local TV includes political; network and cable include Olympics in 2021e Source: “Reassessing The Pace Of Recovery For U.S. Media”, published October 20, 2020

11 U.S Media & Entertainment | Pivot To Content-Centric Model Offers Flexibility

Media companies will increasingly prioritize distributing new Primary Monetization Secondary Monetization content via streaming platforms over traditional distribution media (theatrical release, television). – Some streaming content may get shown  Film (theatrical release)  Consumer Products secondarily on television and AVOD services to drive consumer traffic to SVOD streaming  Linear TV  Experiences platforms (reverse of )  Sell to third party  Gaming – Media companies will continue to pursue ways IP / Content to expand monetization of owned IP. Disney  Streaming services  International remains the model for its peers. o AVOD  Publishing o SVOD/Hybrid  Theater  Theme parks  Third party promotions

12 US. Media & Entertainment | Relative Global Positioning

We believe general entertainment SVOD services can achieve profitability and cash flow with economies of scale (global reach and scaled content) G – Only AT&T (Warner Media) and Walt Disney have l scale in owned content though AT&T has yet to o pursue global reach. b – Netflix continues to aggressively build out its In For The global library even as it loses its licensed content a Long Haul? back to the studios. l – Midsized studios lack depth / breadth of content, leaving them in strategic no man’s land. R – While the tech companies have global reach, they Niche Strategies have yet to commit to building scale in content e and we have yet to be convinced that they want a media for more than as a retention tool. c – Companies with smaller content libraries will find it increasingly tough to go it alone. h DTC Powerhouses

No Man’s Land

Scale of owned content 13 U.S. Media & Entertainment | Consumers Faced With A Crowded SVOD Universe

Niche SVOD General SVOD NHL.TV MLB.TV NFL Sunday Ticket

NBA Team/League Pass Strategy Market size Willing-ness Content Brand differe- to pay invest-ment ntiation $20 Match Pass DAZN

GE SVOD High High High High

$15 HBO MAX GE AVOD Medium Medium Medium Medium Netflix NBC Sports Gold YouTube Premium Criterion Channel Showtime $10 Niche SVOD Low High Medium High WWE Network BET+ Live Paramount+ Prime Video DC Universe Kitchen Disney+ Niche AVOD Low Low Low Low Sundance Now Shudder Acorn TV Now Paramount+ Hulu Boomerang Urban Movie ESPN+ History Vault AMC+ Quibi Apple TV+ $5 OTT--Over the top. SVOD--Subscriber video . AVOD-- Peacock Ad-supported . GE--General entertainment. CuriosityStream

Niche AVOD General AVOD Free MotorTrend Go Cartoon Network Laugh CBS Sports HQ CBSN IMDb TV Out DiscoveryGO YouTube Entertainment Pluto TV Roku Channel Tonight

More Niche General Entertainment Focused

Indicates hybrid service having both subscription and ad-revenue 14 U.S. Media & Entertainment | Not All Will Succeed

Parent company Apple Amazon.com Discovery Walt Disney AT&T Walt Disney Netflix ViacomCBS Comcast

$8.99 (Basic) CBS All Access: Free (ad-supported) $4.99 $5.99 $4.99 $8.99 $7.99 $14.99 $14.99 (Stndrd) $5.99 $4.99 (Prem) Monthly sub price $6.99 (ad-free) $11.99 (ad-free) $17.99 (Prem) $9.99 (ad-free) $9.99 (Prem ad-free)

Advertising No No No Planned Yes No Yes Yes 1 (Basic) Streams 6 2 TBD 4 3 1 2 (Stndrd) TBD 3 Download 4 (Prem)

Disney, , Marvel, CBS, Showtime, Originals, 3rd party TV Discovery, Scripps, A+E, 21CF, National Disney, 21CF, FXX, Originals, NBCU content, HBO exclusive shows & movies, NFL BBC Geographic & Lucasfilm originals, third party TV third party TV The Office, Available Content Original content content, Warner Bros original content Thursday Night, 3rd party 50 series at launch content. shows and shows and Live sports (Olympics) & owned & original content Over 30,000 episodes & SVOD services 55,000 episodes 11,700 episodes & 700 movies movies news movies movies

U.S., Nordics, , 26 U.S., Europe, India, U.S. and 190 countries U.S., , and Availability (Year launched) >100 countries >200 countries U.S. U.S. markets in 2021 , LATAM Japan (not China) Australia

U.S. Mobile Service Partner Verizon Verizon AT&T T-Mobile

Est. users (mil.) 10+ 100+ 5.2 73.7 38 37 195 (US 73) 11+ 22

15 Source: Company reports, S&P estimates U.S. Media & Entertainment | Assessing Media Companies’ Streaming Strategies Company OTT Strategy Key DTC brands Brand Content Owned IP Cash Overall Comments strength library Flow position

• Tech platform is gold standard Netflix Broad reach (SVOD) Netflix H M M/L L H • Not owning a studio isn’t a strategic weakness, at the moment • Moving toward free cash flow

Segmented across Disney+, Hulu, • Strongest IP and brands Walt Disney H H H M H multiple services ESPN+, • Track record of global success with Disney+ While it’s still too early to pick winners and losers, media • Is HBO the right brand name? Broad (SVOD with companies are pursuing streaming strategies that reflect HBO Max H/M H H H H/M • Could be very successful given Warner library and strong brands AT&T (Warner Media) Hybrid planned) • Pricing versus peers their IP and content libraries.

Tiered approach, with • Hired gun strategy reflects smaller IP Key factors for success will include: Paramount+, ViacomCBS premium, SVOD, & M/L M M M/L M • DTC strategy (SVOD, AVOD) hits all four quadrants Showtime, Pluto TV – Scale & subscriber growth AVOD • Risk of underinvestment due to limited financial flexibility – Branding & consumer awareness Discovery+, FNK, • Can Discovery+ expand beyond niche? Discovery Niche but global H/M M M M M Eursport, • Unique watch and buy strategy – Profitability & cash flow

• AVOD service linked to cable service reflects desire to defend Comcast (NBCUniversal) Hybrid/AVOD Peacock M M M H H/M core cable business • Is size of library sufficient?

Tubi • DTC currently limited to Fox Nation and Tubi Fox Niche H L L M L Fox Nation • Potential to offer sports DTC service

AMC+, • Niche strategy, difficult to replace lost revenues and cash flow Niche M/L M/L L L L AMC Networks Sundance, Shudder from declining linear TV operations

Rankings not reflective of current credit ratings

16 U.S. Media & Entertainment | SVOD Services Feeding U.S. Video Content “Bubble”

600 Estimated Number of Scripted Original Series 532 500 Online Services 487 495 455 Broadcast 421 Fierce competition New content production levels finally returning to normalized levels 117 160 400 Pay Cable 389 49 93 to differentiate with complex TV and film productions still delayed 349 33 Basic Cable Broadcast networks reducing output from 2015 peak as basic cable 24 abandons originals 288 300 150 153 Capped by primetime SVOD services aggressively expanding original series offerings 266 15 148 145 hours 6 131 146 – Old media will increasingly prioritize new content to online 210 216 platforms over traditional distribution media 1 4 119 37 Will increase modestly 200 182 116 34 36 42 How much original content is necessary for the SVOD services? 33 45 as focus shifts to 122 113 streaming 33 29 100 135 Dimishing value for 25 174 186 181 175 originals on basic 21 161 144 111 125 cable 17 66 74 0 30 2002 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: FX Networks Research

17 U.S. Media & Entertainment | Sports Is Glue Holding Video Bundle Together

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

NHL (NBC) Commitment to sports is double-edged sword Belmont Stakes (NBC) MLB (ESPN) – Over $150 billion in sports rights commitments NFL Monday Night (ESPN) – MLS (Disney, Fox) High profile major sports rights available in 2021 (NHL, MLB) NFL Sunday (CBS, Fox, NBC) – NFL accounted for 65 of top 100 TV telecasts in 2019 NFL Thursday (Fox) NFL Sunday Ticket (DTV) – Sports not immune to declining audience ratings (NFL down 6% through WNBA (ESPN) midpoint of 2020/2021 season) Preakness (NBC) (NBC) When will digital platforms challenge broadcast networks for premium sports rights? (ESPN) UFC (Disney) – Network TV still only distribution platform offering full national reach Wimbledon (ESPN) SEC football (CBS) – Need to gain production experience and develop stable and scalable streaming Big Ten (ESPN, Fox) platform for live video (NBC) NASCAR (Fox, NBC) – May become attractive for second tier sports leagues PAC-12football (ESPN, Fox) – Sports leagues continue to experiment with streaming platforms – CBS All WWE (Fox, NBC) Champions League (CBS beg in 2021) Access (UEFA Champions League), Facebook ( and MLB) and Amazon NBA (Disney, Turner) (TNF and EPL) USTA US Open (ESPN) Big 12 football (ESPN, Fox) Notre Dame Football (NBC) Kentucky Derby (NBC) FIFA Soccer (Fox, Televisa) BCS playoffs (ESPN) MLB (Fox, Turner) PGA (CBS, NBC) PGA Championship (CBS, ESPN) NCAA (CBS, Turner) Olympics (NBC) SEC football (ESPN beg in 2023) Source: Company reports, S&P estimates

18 U.S. Media & Entertainment | Television’s Future Is Tied To The NFL

NFL Package Expiration Date Average Annual Current ‘19 Ad Rev Avg. Viewers Comments Existing contracts expire after 2021/2022 (MNF) and 2022/2023 seasons Price Partner Share (vs. 2019) – 2020 NFL ratings down 7% versus 2019 season (through week 13) – New players’ collective bargaining agreement through 2030 season Is it better to overpay or to lose contract? Thursday Night 2022/2023 $660mm FOX -- -13% • Unlikely to attract other bidders than Fox – Cost escalation for next contracts lowers EBITDA and depletes free cash flow generation 2022/2023 $1,030mm CBS 24% -3% AFC Sunday – Loss of NFL contract hits audience ratings, advertising, and contractual leverage over distributors NFC Sunday 2022/2023 $1,100mm FOX 39%# -1% Potential outcomes: – New media companies unlikely to win broadcast contracts but could • NFL has opt out option after 2019 season expand digital streaming rights Sunday Ticket 2022/2023 $1,500mm DIRECTV -- -- • Opportunity for streaming service to win? – Reshuffling of rights owners as Disney may aggressively pursue additional broadcast packages – Will the NFL encourage Warner Media (TNT/TBS) to bid? • #1 broadcast show on television Sunday Night 2022/2023 $950mm NBC 21% -18% • Super Bowl broadcast and flex schedule rights – Credit ratings impact will depend on price paid and importance of NFL to business

• Most expensive on a per viewership basis Monday Night 2021/2022 $1,900mm ESPN 17% -4% • Does not include Super Bowl broadcast rights but does include Pro Bowl and NFL draft

Ratings are P2+, L+SD through first 13 weeks of 2020 season Fox ad share includes both Thursday and Sunday NFL Source: , company reports, S&P estimates

19 U.S. Media & Entertainment | Ranking 13 Major U.S. Media, Telecom, & Cable Companies

Rating Business Risk Profile Current LTM Adjusted Upgrade Threshold Downgrade Implied BBB Leverage Threshold Downside Threshold* The battle for consumers' attention spans has intensified. While much of the attention has been focused on the impact on the Comcast A-/Stable/A-2 Strong 3.0x 2.0x 3.0x 4.0x media and entertainment sector, the convergence of the media, telecom, and cable sectors means that these secular pressures Walt Disney BBB+/Negative/A-2 Strong 5.2x 3.0x 3.5x 4.0x are affecting the entire coverage sector. – Media companies have finally conceded that the pay-TV Equinix BBB-/Stable/-- Strong 3.7x 3.75x 4.25x 3.75x ecosystem is dying and have been forced to experiment with their DTC services. BB+/Stable/-- Strong 4.4x 4.0x 4.75x 3.75x – The cable companies, while experiencing worsening Verizon BBB+/PositiveA-2 Strong 2.5x 2.5x 3.25x 3.75x video subscriber losses, have benefitted from this trend because they have the best and fastest broadband AT&T BBB/Stable/A-2 Strong 3.4x 3.0x 3.75x 3.75x internet pipe into the home. – The wireline industry, with its dependence on inferior Netflix BB/Stable/-- Satisfactory 2.8x ------copper plant, continues to lose its broadband customers to the cable sector at an alarming rate. Cox Enterprises BBB/Stable/A-2 Satisfactory 2.9x 2.25x 3.25x 3.25x – The wireless industry remains poised to reap the long- ViacomCBS BBB/Negative/A-2 Satisfactory 3.9x 2.25x 3.0x 3.0x term benefits from 5G, which will combine mobility with a faster broadband pipe. Fox BBB/Stable/-- Satisfactory 1.2x 2.0x 3.0x 3.0x

Discovery BBB-/Stable/A-3 Satisfactory 3.4x 2.75x 3.5x 3.0x

Sinclair BB-/Negative/-- Satisfactory N/A 4.5x 5.5x 3.0x

Nexstar BB-/Stable/-- Satisfactory N/A 4.5x 5.5x 3.0x

Note: Ratings as of Dec 22, 2020 Adjusted Leverage as of Sept 30, 2020 except AT&T and Cox,. Disney’s leverage is estimated. Thresholds for Netflix based on cash flow-to-debt metrics. Leverage for Sinclair and Nexstar elevated due to recent acquisitions 20 See “Amid Secular Pressures, Most U.S. Media Companies' Long-Term Prospects Have Diminished Somewhat” article, published February 19, 2020 Copyright © 2020 by Standard & Poor's Financial Services LLC. All rights reserved.

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