S&P rates CBS notes BBB

S&P said it assigned a BBB rating to CBS Corp.’s proposed senior unsecured notes.

The company intends to use the proceeds for general corporate purposes, including share repurchases and short-term debt repayment, S&P said.

The company’s BBB long-term and A-2 short-term corporate credit ratings are unchanged.

CBS’s satisfactory business risk profile assessment is based on the company’s leadership position in U.S. television with its No. 1-ranked television broadcast network, significant revenue upside from above-average retransmission fee growth and potential for healthy revenues from content licensing and distribution, S&P said.

The company’s financial risk profile is considered intermediate, reflecting an expectation that the company will maintain adjusted leverage at less than 3x on a sustained basis, the agency said.

Still, based on the company’s historical track record, the agency believes CBS would likely pull back on shareholder returns in the event of an economic downturn or more pronounced pressure on advertising revenues.

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