Fitch rates Time Warner notes BBB

Fitch Ratings said it assigned a BBB rating to Time Warner Inc.'s proposed issuance of 10-year notes due 2020 and 30-year debentures due 2040.

Time Warner's issuer default rating is BBB, short-term issuer default rating is F2, senior unsecured rating is BBB and commercial paper is F2.

The outlook is stable.

Proceeds will be used to help fund its offer to purchase any and all of the $1 billion of 6¾% notes due 2011, and to repay debt and for general corporate purposes.

Ratings reflect strong and consistent free cash flow, solid credit protection measures, sound liquidity, leading market positions in core businesses and strong content brands, the agency said.

Concerns are event risk, secular challenges and cyclicality facing traditional media, according to the agency.

The company's net leverage is comfortably below its target of 2.5 times, Fitch said.

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