Standard & Poor’s revises CBS ratings to ’stable’ from ‘negative’
By APFriday, March 26, 2010
Standard & Poor’s revises CBS ratings to ’stable’
NEW YORK — Standard & Poor’s Ratings Services said Friday it has revised its outlook on CBS Corp. to “stable” from “negative,” to reflect the media company’s moves to repay debt and signs of a recovery in its broadcasting and outdoor advertising businesses.
The ratings agency said CBS is planning to repay its $415 million 7.7 percent senior notes due 2010 with cash balances and cash flow, and noted that it has already repaid all of its $400 million of securitization debt.
S&P has a “BBB-” rating on CBS. This reflects the company’s “leadership positions in network TV, outdoor advertising, and network and syndicated TV programming production and distribution,” said Standard & Poor’s credit analyst Heather Goodchild in a statement.
But greater competition for audiences and the challenges of a weak economic recovery “temper these positive rating factors,” S&P said.
Shares in CBS rose 3 cents to $13.90 in afternoon trading.
