Moody's Ratings downgraded Getty Images Inc. on Friday, citing delayed interest payments and heightened liquidity risks stemming from litigation costs and failed merger expenses.
The agency lowered Getty's Corporate Family Rating to Caa3 from Caa1 and its Probability of Default Rating to Caa3-PD from Caa1-PD. Senior secured bank credit facilities and guaranteed senior secured global notes were cut to Caa2 from B3, while guaranteed senior unsecured global notes due in 2027 and 2028 were downgraded to Ca from Caa3.
Getty missed interest payments on $5.3 million of 9.75% senior unsecured notes due March 1, 2027, and $264.7 million of 14% senior unsecured notes due March 1, 2028. The company invoked 30-day grace periods but disclosed sufficient cash to cover day-to-day obligations. Moody's noted Getty's unrestricted cash balance fell to $52 million at the end of June 2026, while free cash flow turned negative $123 million.
Liquidity pressures intensified after Getty incurred a $110.9 million litigation payment in the second quarter of 2026 and approximately $100 million in merger-related costs tied to its abandoned Shutterstock deal. Leverage stood at roughly five times Moody's adjusted EBITDA as of June 30, 2026, while 12-month interest expense reached about $200 million, up from $127 million in 2023.
The company's $150 million revolving credit facility was fully drawn by July 2026, and Moody's warned of potential "springing maturity" on the facility by September 2, 2027, if the 14% notes are not refinanced, redeemed, or exchanged below $100 million. Getty serves about 635,000 customers annually across more than 200 countries.
