A blow to the owner of TVN. A dangerous decision has been made

• Garbage rating for Warner Bros Discovery. The owner of TVN is facing increasing problems.
• Warner Bros Discovery shares on the US stock exchange have fallen by 12.7% since the beginning of the year.
• In the first quarter of this year it had a net loss of $449 million.

"Junk" rating is an unpleasant term that means a rating so low that a large portion of investors no longer want to have anything to do with the company. However, for them to actually turn away from the company, thus pushing it towards even greater trouble, junk ratings should also appear at other agencies, namely Moody's and Fitch Ratings.

Warner Bros. Discovery is still rated "investment grade," one notch above junk, although its Moody's rating has had a negative outlook since November and could be downgraded soon.

S&P justifies its decision to lower the rating with the increasingly poor results of the company's television part, which is generating decreasing revenues and less and less cash.

The company needs this to service its debt. According to Bloomberg, it is around $38 billion.

One can assume that this is why the Americans wanted to sell TVN – thanks to such a move, they would limit the scale of their least profitable television part, and secondly, they would have some money from the sale to reduce debt. However, as we know very well, the sale did not take place. So far, there are no visible effects of implementing other ideas to improve the situation, hence the rating downgrade.

If other agencies were to follow S&P's example now, and the market actually began to treat Warner Bros. Discovery as a "junk" company, then it would mean a significant increase in the company's debt-servicing costs, and therefore even greater problems than it has had so far.

• Warner Bros Discovery shares on the US stock exchange have fallen by 12.7% since the beginning of the year.
• Over the last four years, the company has lost more than two-thirds of its previous value.
• In the first quarter of this year it had a net loss of $449 million .

Its best-known brands worldwide include Max, HBO, CNN, Discovery, Eurosport and Animal Planet.