Fitch to rate DirecTV notes BBB-

Fitch Ratings said it expects to assign a BBB-(EXP) rating watch positive rating to DirecTV Holdings LLC's issuance of senior unsecured notes.

DirecTV Holdings is a wholly owned indirect subsidiary of DirecTV.

DirecTV Holdings’ BBB- issuer default rating was placed on rating watch positive following the May 2014 announcement of the acquisition of DirecTV by AT&T Inc. AT&T's issuer default rating is A and is on rating watch negative.

Proceeds from the offering, together with cash if necessary, are expected to be used for the repayment of DirecTV Holdings’ 3.55% senior notes due March 15, 2015. As of Sept. 30, DirecTV Holdings had about $19.8 billion of debt outstanding.

The notes will be guaranteed on a senior unsecured basis by DirecTV and DirecTV Holdings’ material domestic subsidiaries. The notes will rank pari passu with DirecTV Holdings’ existing senior unsecured debt (including its senior revolving credit facility). In addition, the guarantees rank equally with the respective guarantor's senior unsecured debt.

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