S&P rates DirecTV notes BBB

Standard & Poor's said it assigned BBB ratings to co-issuers DirecTV Holdings LLC's and DirecTV Financing Co. Inc.'s proposed $750 million senior unsecured notes.

The agency said it expects the notes will carry a guarantee from DirecTV.

Pro forma for the transaction, the company's debt-to-EBITDA ratio was about 2.6x as of Sept. 30, S&P said.

Over the long term, the agency said it believes the company will operate within the 2.5x consolidated leverage parameter, while still pursuing its shareholder-return strategy of using cash flow generation and proceeds from subsequent debt issuances to fund share repurchases.

The BBB corporate credit rating and stable outlook on parent DirecTV remain unchanged.

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