Moody's Ratings cut Getty Images Inc.'s credit rating deeper into junk territory, downgrading the visual media company by two notches to Caa1 from B2 and revising the outlook to negative. The move reflects weakening liquidity and lingering uncertainty over a potential merger with Shutterstock Inc. The downgrade follows a legal setback where the company lost its appeal and must pay about $88 million plus interest to investors.

The UK's Competition and Markets Authority warned the potential merger could lead to a "substantial lessening of competition" in editorial content and will face an in-depth investigation. Getty Images faces mounting financial pressure with $2 billion in total debt. The company has $295 million of unsecured notes maturing in March 2028 and a revolving credit facility due in May 2028, which may be pulled forward to November 2027 if the notes aren't refinanced.

Getty Images plans to fund the legal judgment by drawing on its $150 million revolving credit facility, a move Moody's estimates will add to liquidity pressure. The company now grapples with dwindling cash while servicing expensive debt amid approaching maturities. The dual challenges of legal liabilities and regulatory hurdles over the Shutterstock merger have increased financial uncertainty for the visual media provider.