Fitch: Time Warner notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Time Warner Inc.'s proposed issuance of $1 billion of 10- and 30-year notes and debentures.

The proceeds are expected to be used for general corporate purposes.

The company has a BBB+ issuer default rating for Time Warner with a stable outlook.

The issuance is consistent with an expectation that over the ratings horizon, Time Warner will issue debt to keep leverage at or near its target as EBITDA grows, Fitch said.

The agency said it estimates gross and net leverage of 2.4x and 2.2x as of Sept. 30 and pro forma for the issuance gross leverage will increase to 2.5x.

Fitch said it does not anticipate any change to Time Warner's financial policy, namely its 2.5x net leverage target or its capital allocation strategy.

The agency said it believes Time Warner's operating profile and strategies provide sufficient capacity at the current ratings.

Time Warner's consistent financial policy and capital-allocation strategy continues to focus on investing in its business while maintaining a strong balance sheet, Fitch said.

The contemplated spin-off of Time Inc. will benefit the company's operating profile, the agency added, but is not expected to have a material impact on the company's credit profile.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.