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S&P assigns Time Warner debt BBB-
S&P said it assigned its BBB issue-level rating to Time Warner Inc.'s proposed senior unsecured debt due 2027.
At the same time, the agency placed the rating on CreditWatch with positive implications.
The company plans to offer a benchmark-size bond with a 10-year maturity and use the net proceeds for general corporate purposes, including to repay outstanding debt.
Concurrent with the debt offering, Time Warner announced cash tender offers for up to $2.7 billion in debt securities.
S&P said the BBB/A-2 corporate credit ratings on Time Warner remain on CreditWatch positive, where it placed them on Oct. 24 pending the completion of AT&T Corp.'s acquisition of the company, which was announced in October.
The ratings reflect Time Warner's strong market position in both the cable network (Turner and HBO) and the film and TV entertainment (Warner Bros.) sectors, the agency explained. They also reflect S&P’s expectation that management will keep fully adjusted leverage, net of surplus cash, below the 3.25 times debt-to-EBITDA target threshold for the company at a BBB rating.
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