Fitch revises Scripps to stable

Fitch Ratings said it affirmed the BBB+ issuer default rating assigned to Scripps Networks Interactive, Inc. and the specific issue ratings assigned to the company.

The outlook was revised to stable from negative.

The company has about $3.7 billion of debt outstanding as of March 31.

Fitch said the stable outlook reflects Scripps’ commitment to delevering below 2.5 times by year-end 2016. It believes the company has demonstrated its commitment by pausing share repurchases and repaying $325 million of debt during the first quarter of 2016.

The agency calculates Scripps’ gross leverage at 2.6 times as of March 31, which exceeds the threshold of 2.5 times for the recommended rating.

Fitch anticipates Scripps will generate in excess of $500 million of annual free cash flow, which will facilitate expected debt reduction.

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