S&P rates Time Warner commercial paper A-2

Standard & Poor's said it assigned Time Warner Inc.'s (BBB/stable/A-2) new $5 billion commercial paper program an A-2 rating.

The outlook is stable.

The new program replaces the company's previous $6.9 billion commercial paper program, S&P said.

Commercial paper issued under the new program will be guaranteed by direct subsidiary Historic TW Inc. (BBB/stable), the agency added.

The BBB corporate credit rating on Time Warner reflects the company's satisfactory business risk profile, which is anchored by its leading positions in cable television networks and filmed entertainment, S&P said.

The rating also reflects the company's intermediate financial risk profile, characterized by leverage that is comfortably below the 3.5 times threshold but tempered by significant share buybacks and dividends, the agency said.

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