Fitch rates APN notes BB-

Fitch Ratings said it published APN News & Media Ltd.’s long-term foreign-currency issuer default rating and senior unsecured debt class rating at BB-.

The outlook is stable.

Fitch also said it published an expected BB- rating on the proposed senior unsecured guaranteed dollar-denominated notes to be issued by its wholly owned subsidiary, Biffin Pty Ltd., which is unconditionally and irrevocably guaranteed by APN and key operating subsidiaries.

The notes are rated in line with APN’s senior unsecured rating of BB- as they will represent direct, unconditional, unsecured and unsubordinated obligations of the company, the agency said.

The proceeds from the proposed senior unsecured notes will be used to repay outstanding indebtedness.

The ratings reflect APN’s strong brands in radio and publishing in Australia and New Zealand and its ability to consistently deliver high quality content, which should enable the company to maintain its market positions, the agency said.

The ratings also reflect APN’s unique asset combination and its ability to offer cross-platform advertising over its publishing, radio, outdoor and digital assets, Fitch said.

The higher earnings and cash flow visibility from its radio networks help mitigate the structurally weaker publishing businesses, the agency added.

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