Moody’s provides Baa2 to CBS notes

Moody's Investors Service said it assigned a Baa2 rating to CBS Corp.’s proposed senior unsecured notes offering of benchmark size.

The outlook remains stable.

The notes will be senior unsecured obligations of CBS and will rank equally with all of CBS' current and future senior unsecured debt obligations.

These notes will be guaranteed by CBS Operations, Inc., a wholly owned subsidiary of CBS.

Proceeds are expected to be used to repay the company's existing 1.95% notes due July 1, 2017 at maturity. The remaining net proceeds, if any, will be used for general corporate purposes, which may include, among other purposes, a redemption of some or all of the company's 4.625% notes maturing in 2018 as well as pay off commercial paper borrowings. The agency does not expect leverage to change as a result of this transaction.

Moody’s said the Baa2 senior unsecured debt rating is supported by CBS’ leadership position in the media and advertising industry – as indicated by its significant revenue scale, a very valuable asset base of large market businesses and iconic brands in each of its segments and stable double-digit operating margins.

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