S&P ups Globopar, TV Globo

Standard & Poor's said it raised its corporate credit ratings on Globopar SA and TV Globo Ltda. (jointly referred to as Globo) to B+ from CCC- and removed the ratings from CreditWatch positive, where they were placed on July 21.

The outlook is stable.

S&P said the rating action follows the conclusion of a review of the companies' credit profiles after the debt restructuring completed in July. The debt renegotiation process resulted in the cancellation of Globo's old notes, whose ratings were withdrawn.

According to S&P, the revised ratings on Globo reflect the highly leveraged consolidated financial profile of Globo; the limited financial flexibility imposed by its bondholders after debt restructuring; and the risks associated with the company's exposure to the volatile economic environment in Brazil, which is exacerbated by the impact of the advertising market spending cyclicality on the company's fixed cost structure.

These negative factors are partly mitigated by Globo's strong content production and well-structured programming schedule, and its leading position in the Brazilian media industry, which is boosted by its above-average TV audience share and ratings, the agency said.

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