Moody's Ratings recently affirmed the Baa3 senior unsecured notes rating for News Corporation, simultaneously adjusting the outlook from stable to positive. This move reflects the credit rating agency's recognition of News Corp's ongoing success in reducing its overall debt burden.
Key to this revised outlook is the company's substantial improvement in its debt-to-EBITDA ratio, which contracted to 2.5 times for the twelve months ending September 30, 2025, compared to 3 times during fiscal year 2024. This advancement is largely attributed to solid revenue gains and enhanced EBITDA performance, particularly within the Dow Jones and Digital Real Estate Services segments.
Despite facing broader macroeconomic challenges, Moody's anticipates News Corp will sustain robust operational results and maintain sturdy credit metrics. This expectation hinges upon the company's prudent management of its acquisition activities and share repurchase initiatives, potentially paving the way for an upward ratings revision within the next 12 to 18 months.
News Corp's credit strength is underpinned by its significant scale, reporting $8.5 billion in revenue over the trailing twelve months, alongside diverse geographic presence spanning the United States, the United Kingdom, and Australia. Its revenue streams are distributed across four distinct business units, including reputable brands such as The Wall Street Journal, HarperCollins, and Realtor.com.
The Dow Jones and Digital Real Estate Services divisions alone account for approximately 85% of the company's total segment EBITDA as calculated internally, and boast the highest revenue growth and margin metrics at 25.4% and 33.9% respectively. These figures highlight their contribution to the company’s overall financial health.
Nonetheless, Moody's highlights certain constraints impacting News Corp's credit profile. The News Media segment, responsible for about 26% of total revenue, faces headwinds due to unfavorable shifts in news publishing demand and declines in print advertising. Similarly, the Book Publishing segment contends with inflationary pressures, particularly elevated printing costs. Additionally, the Digital Real Estate Services segment remains sensitive to fluctuations in housing market conditions and mortgage interest rates.
The credit agency also noted an acceleration in News Corp's share repurchase activity starting August 2025, driven by management’s belief that the company’s stock is undervalued relative to its intrinsic worth.
From a liquidity standpoint, News Corp maintains strong reserves, holding roughly $2.2 billion in cash as of the end of September 2025, complemented by an undrawn $750 million revolving credit facility set to expire March 2027.
Moody's conditions for a potential future rating upgrade include News Corp's ability to consistently keep its debt-to-EBITDA ratio below 2.5 times alongside sound financial discipline. Conversely, should operating performance weaken or the company's leverage rise above 3 times debt-to-EBITDA for a sustained period, a downgrade could be warranted.