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BULLETIN: Blockbuster Split-Off Plan Has No Effect on Viacom Inc. Rating Feb 04
Standard & Poors, Feb 2004
Abstract
NEW YORK (Standard & Poor's) Feb. 10, 2004-Standard & Poor's Ratings Services said today that Viacom Inc.'s (A-/Stable/A-2) plan to split off Blockbuster into a separate company, by means of an exchange of Blockbuster shares for Viacom shares, is not expected to affect Viacom's rating or outlook. Although Blockbuster currently has lower leverage than Viacom, Viacom's debt to EBITDA pro forma for the split-off, is roughly in line with Standard & Poor's 2.25x target ratio at an 'A-' corporate credit rating. Viacom, moreover, has considerable free cash flow with which to reduce debt and reinvest in its business. Standard & Poor's views the split-off as improving Viacom's business profile, in light of the maturity of the video rental business, near-term...
Companies mentioned in this report are: CBS Corp.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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