S&P: Time Warner unaffected

Standard & Poor's said its corporate credit rating on Time Warner Inc. (BBB+/negative/A-2) is not affected by the offer of subsidiary AOL LLC (BBB+/negative) to purchase TradeDoubler for 6.3 billion Swedish kronor, or about $900 million.

The BBB+ corporate credit rating on Time Warner is predicated on the company maintaining a gross debt-to-EBITDA ratio of below 3x pro forma for the acquisition of Adelphia Communications Corp. assets, the subsequent redemption of Time Warner's Comcast Corp. interest, the offer to acquire TradeDoubler, recently announced asset sales and debt-financed share repurchases in 2006. At the current rating level, the agency said it assumes that Time Warner will not pursue a very large follow-on share repurchase within a specific time frame after the existing authorization concludes.

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