EMI Group plc
Response to Moody's statement
LONDON 11 March 2003: EMI Group plc has today been informed of the decision of
Moody's Investors Service to reduce its debt ratings from Baa2 with a negative
outlook to Ba1 with a stable outlook, based on concerns regarding the dynamics
of the recorded music market.
EMI is pleased that Moody's has acknowledged that palpable progress is now
being made in the fight against piracy, through actions that have been and are
being taken by EMI, by the wider music industry and by government agencies. We
have confidence that these actions will create the basis for meaningful
improvement in recorded music market conditions.
We are also pleased that Moody's has acknowledged the resilience of EMI's
market-leading music-publishing business, the improved cost structure, and
management's ongoing commitment to debt reduction.
The decision has no impact on EMI's liquidity, which remains strong, nor does
it trigger any renegotiation clauses or advance repayments of bank credit
lines. At this rating, the impact on EMI's interest charge for the current
fiscal year will be negligible, with a maximum annualised increase in interest
charges thereafter of £8m, before tax relief.
Siobhan Turner Investor Relations +44 20 7667 3234
Patrick Handley +44 20 7404 5959