S&P rates Discovery notes BBB

Standard & Poor's said it assigned a BBB rating on Discovery Communications LLC's proposed $650 million notes due 2021.

Its parent company, Discovery Communications Inc., will guarantee the proposed issue as it does for the company's other public debt, S&P said.

The proceeds will be used for general corporate purposes.

The rating reflects the company's satisfactory business risk profile anchored by a respectable portfolio of cable TV networks and an intermediate financial risk profile, based on moderate leverage and strong cash flow, S&P said.

The stable outlook reflects a view that the company's strong cash flow generating ability and sustained earnings growth will enable management to implement moderate shareholder-favoring measures and make some modest acquisitions without causing a meaningful rise in leverage, the agency said.

S&P said it expects EBITDA growth to normalize, but continue at a satisfactory pace.

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