Fitch rates Televisa note BBB+

Fitch Ratings said it assigned a BBB+ rating to Grupo Televisa, SAB's proposed Ps. 4.5 billion senior notes due 2037 to be issued in Mexican pesos and paid in dollars and affirmed the BBB+ foreign- and local-currency issuer default ratings and AAA(mex) national scale long-term rating.

The outlook is stable.

Proceeds from the new issuance will be used for general corporate purposes, including the replenishment of the company's cash position following the payment, with cash on hand, of Ps. 992 million of 8.15% notes that matured on April 13, the repayment of other outstanding debt and for shares repurchases.

The agency said Televisa's ratings reflect its continued strong business profile, improved credit fundamentals, solid free cash flow generation and strong liquidity profile. The total-debt-to-EBITDA ratio decreased to 1.2x for the last 12 months ended March 31 from 1.4x for the prior-year period.

Televisa's TV broadcasting business is in a mature stage and it will grow at similar rates as domestic GDP, Fitch said.

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