Moody’s rates 21st Century Fox notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to 21st Century Fox America Inc.'s proposed benchmark size senior unsecured notes offering.

The outlook is stable.

21st Century Fox America Inc. is an indirect wholly owned subsidiary of Twenty-First Century Fox, Inc. (FOX).

The new notes are anticipated to be split into 10- and 30-year maturities, for a total in the range of about $1 billion. The new notes are senior unsecured obligations and will rank equally with the company's existing senior unsecured debt and future unsecured obligations.

Proceeds will be used for general corporate purposes, including repayment of $750 million 5.3% senior notes due this year.

Debt-to-EBITDA incorporating Moody's standard adjustments was around 3.2 times as of June 30.

Moody’s said it believes that FOX is taking advantage of the low interest rate environment and the agency anticipates that over time, the interest saving from this debt offering will outweigh the short-term negative cash carry.

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