Fitch rates Mattel notes A-

Fitch Ratings said it assigned an A- rating to Mattel, Inc.'s proposed senior unsecured $300 million five-year notes and $300 million 30-year notes that were to be issued Thursday.

Management intends to use the proceeds for general corporate purposes and to fund a portion of the HIT Entertainment Ltd. acquisition.

On Oct. 24, Mattel announced that it had agreed to purchase HIT Entertainment, owner of Thomas the Tank Engine and other brands, for $680 million in cash. The transaction is expected to be funded mostly with debt and should close in the first quarter of 2012.

Fitch noted that the acquisition is not expected to have more than a modest impact to Mattel's more than $6 billion in revenues but should help the bottom line as HIT's licensing-based business would carry higher EBITDA margins than Mattel's average.

Further, as the intellectual property owner, Mattel can provide the related toys for other expiring licenses.

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