Moody's reviews Lionsgate credit score

Moody's Traders Services are looking at its credit score on Lionsgate for any possible upgrade following its $412.5 million utilized buyout of Summit Entertainment.Moody's made the disclosure Friday, 2 days after Standard & Poors introduced it had been thinking about upgrading of Lionsgate's rating, saying purchasing Summit could place the studio on the sounder financial footing.Moody's stated the purchase could generate significant financial savings as well as broaden its revenue stream with the help of the effective "Twilight" franchise."We feel the purchase has potential positive credit implications for Lionsgate, and throughout the review, we'll assess its proper and financial impact," Moody's stated. "We feel it could cause significant financial savings and can help broaden Lionsgate's revenue stream with the addition of the effective Twilight franchise that has highly visible income through 2013."Moody's rates Lionsgate at B2 and gave the minimajor an optimistic outlook this year. S&P placed its "B-" corporate credit score on what's known as "CreditWatch with positive implications" and predicted the offer could finish up reducing Lionsgate's debt "meaningfully."Wall Streeters expect Summit's "Twilight" franchise to inject half a billion dollars of fresh cash into Lionsgate within the next 5 years.Lionsgate shares returned greater following a Jan. 13 deal announcement, closing Thursday at $9.48. They retreated Friday by 11 cents to $9.36 but have still acquired 9% within the five publish-deal periods.Liosngate introduced Friday that Summit cake toppers Take advantage of Friedman and Patrick Wachsberger had decided to run the film division of Lionsgate. Contact Dork McNary at dork.mcnary@variety.com