S&P lowers Time Warner

Standard & Poor's said it lowered its long-term ratings on Time Warner Inc. and related entities to BBB from BBB+ and removed them from CreditWatch, where they were placed with negative implications on Nov. 7, 2007. The outlook is stable.

At the same time, S&P affirmed the A-2 short-term ratings.

The agency said the downgrade reflects the departure of Time Warner's most predictable source of growth following the separation of Time Warner Cable Inc., Time Warner's proportionally increased exposure to the volatile performance of filmed entertainment and the continuing underperformance at AOL and publishing.

Balancing these concerns are management's commitment to reduce the company's debt burden with a portion of the $9.25 billion dividend that the company received from Time Warner Cable, S&P said.

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