Telsey Advisory Group lowered its rating for Viacom to market perform from outperform, citing the prospects of a credit rating downgrade or dividend cut.
"Earlier this month, Moody's lowered Viacom's rating outlook from stable to negative. A downgrade of the company's credit next is a real possibility," analyst Tom Eagan wrote in a note to clients Friday.
"Operationally, Viacom's fundamentals continue to trail every other major U.S. entertainment company. A turn-around in FY17 is unlikely."