Fitch affirms ITV

Fitch Ratings said it affirmed ITV plc's long-term issuer default rating and senior unsecured rating at BB-.

The outlook remains negative.

The affirmation follows the Thursday release of the broadcaster's interim results, which showed a fall in net advertising revenue of 15% in the first half of 2009 and a fall in EBITA of £75 million to £46 million. The agency said that results for the first half were expected to be weak, reflecting the effects of deep ad market falls in the first half with only part of the benefit of cost cuts, but the big question for ITV's performance is whether the advertising market is bottoming or not.

Fitch believes, on balance, that the current risks remain reflected in ITV's present ratings and outlook.

The decision to maintain ITV's ratings also reflects a number of positive operational and financial factors, the agency said. ITV has continued to largely hold its share of viewing and increased its share of the U.K. ad market by approximately 2% in the first half, and Fitch said its cost-saving program, due to yield savings of £155 million in 2009, is on track.

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