Citing weak sales of recorded music and a downgrade to an
unnamed company guarantor, leading credit rating agency Moody's
Investors Service downgraded the bonds on Friday. They have gone
from an A3 rating to Baa3 – one notch above junk status, according
to reports by Associated Press and Dow Jones.
Bowie made $55 million when he sold the future rights to 287
across 25 albums recorded before 1990 in January 1997. The idea of
artists raising funds secured by future royalties of their work
became known as Pullman Bonds, named after the banker David Pullman
who drove the Bowie deal.
Only a few similar deals have followed since. Notable signings
came from songwriting duo Nicholas Ashford and Valerie Simpson –
who offered the rights to 247 songs including Ain't No Mountain
High Enough and I'm Every Woman as backing for a $25 million bond
issue in 1999.
The same year, $30 million deals were signed for the rights to
the back catalogues of each of James Brown and Iron Maiden.
