Fitch rates Liberty notes BB

Fitch Ratings said it assigned a BB rating to Liberty Interactive LLC's proposed exchangeable senior unsecured debenture due 2043.

The notes are exchangeable for HSN, Inc. common stock, Fitch said.

The notes will be issued under an indenture dated July 7, 1999. The proceeds are expected to be used for general corporate purposes.

The new debentures will rank pari passu with Liberty's existing notes and debentures and will be structurally subordinated to QVC Inc.'s debt, the agency said.

QVC's debt benefits from a pledge of the capital stock of QVC and is guaranteed by QVC's material domestic subsidiaries, Fitch said.

Liberty has an issuer default rating of BB and senior unsecured debt rating of BB.

QVC has an issuer default rating of BB and senior secured debt rating of BBB-.

The transaction modestly increases leverage, but the increased leverage is manageable within current ratings, Fitch said.

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