Moody's Ratings has upgraded OUTFRONT Media Inc.'s Corporate Family Rating (CFR) to Ba3 from B1, reflecting the rating agency's expectation that the company will adopt more conservative financial management and achieve lower leverage levels.
Along with the CFR move, Moody's raised OUTFRONT's Probability of Default Rating to Ba3-PD from B1-PD. The senior unsecured notes issued by subsidiary OUTFRONT Media Capital LLC were elevated to B1 from B2. Moody's retained its Ba1 rating on the senior secured bank credit facility and the backed senior secured notes. All ratings carry a stable outlook.
Moody's forecasts that OUTFRONT's financial leverage will decline to the low 4x range over the coming 12 to 18 months, a reduction the agency attributes to robust revenue and EBITDA growth. The firm pointed to OUTFRONT's ongoing conversion of traditional static billboards to digital displays and its push into programmatic advertising as initiatives expected to deliver attractive returns and expand margins.
As of the third quarter of 2025, Moody's-adjusted leverage for OUTFRONT stood at 4.6x, and the company reported EBITDA margins in excess of 50%. OUTFRONT operates roughly 560,000 displays across 120 U.S. markets, including a presence in all of the top 25 markets as of December 31, 2024.
Moody's emphasized the company's strong competitive position within the U.S. outdoor advertising industry, noting that the hard-asset nature of billboards and regulatory constraints that limit new supply reduce competitive pressure.
The rating agency did identify specific vulnerabilities. It highlighted a significant concentration of displays in large urban centers, with New York City representing 55% of the company's total displays. Moody's also noted OUTFRONT's long-term contract with the New York Metropolitan Transit Authority, which runs through 2030 and carries what the agency described as "relatively unfavorable economics."
On liquidity, OUTFRONT retains access to an undrawn $500 million revolving credit facility that matures in September 2030 and held about $63 million in cash as of the third quarter of 2025. The company also maintains a $150 million accounts receivable securitization facility with no outstanding borrowings at that time.
Summary of Moody's actions and key metrics:
- CFR upgraded to Ba3 from B1; Probability of Default moved to Ba3-PD from B1-PD.
- Senior unsecured notes of OUTFRONT Media Capital LLC upgraded to B1 from B2; senior secured bank facility and secured notes remain at Ba1.
- Moody's-adjusted leverage: 4.6x as of Q3 2025; EBITDA margins above 50%.
- Scale and footprint: approximately 560,000 displays across 120 U.S. markets, including all top 25 markets as of Dec. 31, 2024.
- Liquidity: undrawn $500 million revolver due Sept. 2030; ~$63 million cash; $150 million AR securitization facility with zero borrowings.
Moody's stable outlook indicates the agency expects these trends to hold over the near term, while the flagged concentrations and contract economics remain points of monitoring for credit risk.