Moody's: Hearst-Argyle outlook developing

Moody's Investors Service said it changed Hearst-Argyle Television, Inc.'s (Baa3 senior unsecured) outlook to developing from stable following Hearst Corp.'s announcement that it made a $23.50 per share tender offer for all of the outstanding class A shares that it currently does not own.

The total transaction is valued at $595 million, the agency said.

Moody's added that the developing outlook reflects the current uncertainty regarding i) the acceptance of the offer and ii) the method of payment and potential impact on the leverage of Hearst-Argyle.

Moody's said it is concerned the transaction could be leveraging in nature if a material amount of debt is financed at Hearst-Argyle.

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