Moody’s rates CBS notes Baa2

Moody’s Investors Service said it assigned a Baa2 rating to CBS Corp.’s proposed senior unsecured notes offering of benchmark size, anticipated to be split in 10- and 30-year maturities.

The new notes will be senior unsecured obligations of CBS and will rank equally with all of CBS’s other unsecured and unsubordinated obligations, Moody’s said.

The notes will be guaranteed by CBS Operations Inc., a wholly owned subsidiary of CBS, the agency said.

The proceeds will be used for general corporate purposes, including share repurchases and repayment of short-term borrowings, Moody’s said.

The transaction is not expected to impact the company’s Baa2 long-term debt rating, prime-2 short-term debt rating or the stable outlook, the agency said.

The ratings also consider the company’s strong liquidity, management’s commitment to investment-grade ratings and an expectation that the company will manage future shareholder distributions within parameters for the existing ratings, Moody’s said.

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