Moody's downgrades VNU

Moody's Investors Service today it downgraded VNU NV's convertible debenture loan due 2006, debenture loans due 2007 and 2009 and Nielsen Media Ratings Inc.'s debenture loan due 2009 to Ba1 from Baa2 and assigned a Ba1 corporate family rating. All of VNU's ratings remain under review for possible further downgrade.

The downgrade follows the announcement that VNU has agreed to be acquired by Valcon Acquisitions BV for €8.6 billion. The offer is still subject to completion of preparations, customary conditions and shareholder approval.

At their new level, the ratings are based on Moody's expectation of a significant leveraging of the group, but the ratings also reflect VNU's strong franchises in the areas of marketing information and business information, above-average organic growth potential in marketing information coupled with longer-term contracts, the agency said.

The continued review for further downgrade reflects uncertainties with regard to the mix of financing for the transaction and the resultant post-deal capital structure, as well as the impact on VNU's operational strategy going forward.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.