European Media Ltd.'s (CME) senior notes due 2004 to B2 from B1, reflecting the deterioration in the company's financial profile in the wake of significant write-offs on its Hungarian operation's programming rights and sustained start-up losses for CME's Polish broadcasting ventures. The rating outlook is negative, Moody's said on Friday.

In Hungary, CME had entered into sizeable programming commitments in connection with an ultimately unsuccessful bid for a national licence. After failing to enter into a partnership with one of the licence winners, CME has decided to write off significant portions of its programming library and future programming commitments.

CME's foray into the Polish market has been dogged by the inability of the company's broadcasting joint venture to increase the limited reach of its network.