Moody's assigns CBS notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to CBS Corp.'s (Baa3 senior unsecured, stable outlook) proposed senior unsecured notes of up to $500 million due 2020.

The notes are unsecured obligations and will rank equally with all other existing and future unsecured debt of the company, the agency said.

The covenant package is the same as CBS' existing senior unsecured notes except that holders of the new notes have a right to put the bonds at 101 should a change of control and a downgrade below investment-grade occur as a result of the change of control, the agency added.

According to Moody's, proceeds from the bond offering will be used by the company to repay some of its existing debt.

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