S&P rates QVC notes BBB-

Standard & Poor's said it assigned a BBB- rating and 1 recovery rating to QVC Inc.'s proposed $500 million senior secured notes due 2022.

The new rating is two notches above its BB corporate credit rating on the company.

The 1 recovery rating indicates 90% to 100% expected recovery in a default.

QVC is a wholly owned subsidiary of Liberty Interactive Corp. and as a result, the companies are analyzed on a consolidated basis at the Liberty Interactive level, S&P said.

The company intends to use the proceeds from the notes offering to repay outstanding borrowings under QVC's revolving credit facility and for general corporate purposes, the agency said.

The BB corporate credit rating remains unchanged, along with the stable outlook.

The ratings are based on management's shareholder-favoring policy, including a history of split-offs and debt-financed share repurchases, S&P said, but also considers QVC's solid competitive position and operating performance.

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