S&P Global Ratings has downgraded Live Nation's outlook to negative following the Department of Justice's antitrust lawsuit, which seeks to force the company to divest Ticketmaster. The credit rating agency cites potential risks to Live Nation's business model and competitive position in the live events industry.

Key points about the outlook change:

• S&P shifted from stable to negative outlook
• Live Nation's management and governance score moved from neutral to moderately negative
• The agency maintained all existing credit ratings, including BB- issuer rating

The downgrade reflects concerns about:

• Heightened regulatory scrutiny
• Financial costs of legal proceedings
• Potential disruption to Live Nation's market position
• Possible impairment of company creditworthiness

Despite these concerns, market response remains largely positive:

• Live Nation stock (NYSE: LYV) trades around $93.50
• Shows modest gains from 2024's start
• Up 17% from May 2023

Analyst perspectives differ on the lawsuit's impact:

• Roth MKM maintains a buy rating with $120 target price
• Analyst Eric Handler believes a forced Live Nation-Ticketmaster split is unlikely
• Handler suggests monopolistic allegations may be difficult to prove

The company plans to defend against the lawsuit while remaining open to discussing certain remedies that aren't expected to fundamentally transform the business.

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