Standard & Poor's Ratings Services' 'BBB-' rating on CBS Corp. reflects our expectation that the company will continue to reduce leverage through EBITDA growth and modest debt repayment over the intermediate term. A recovery in local broadcasting, continued growth at the cable networks, and improved ad rates at the TV network should enable the company to reduce and maintain fully adjusted debt to EBITDA comfortably below our thresholds for the 'BBB-' rating, which is 4x by year-end 2011. We view CBS' business risk profile as satisfactory (see "Business Risk/Financial Risk Matrix Expanded," published May 27, 2009, on RatingsDirect) given the company's leadership positions in network TV, radio broadcasting, outdoor advertising, and network and syndicated TV programming production and distribution. Risks...
Companies mentioned in this report are:
- CBS Corp.
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