S&P: Time Warner unaffected

Standard & Poor's said its corporate credit rating on Time Warner Inc. (BBB+/stable/A-2) is currently unaffected by investor and hedge fund manager Carl Icahn's recent interest in the company.

S&P said Icahn reportedly has accumulated common stock and options that would represent a 2.6% stake in the company.

However, if pressure from Icahn and other investors for a more aggressive shareholder return orientation causes the company to exceed the agency's 2.75 times target gross debt to EBITDA for Time Warner at a BBB+ rating, S&P said it will review the rating.

The agency added if Time Warner's management embarks on a more sweeping corporate restructuring than currently contemplated with its Adelphia Communications Corp. investment, such as a broader spin-off plan, S&P said it will assess the ratings of the remaining entity and any new entities based on the capital structures, business prospects and strategies of the separate corporate units.

© 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.