Moody’s rates Discovery Communications notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Discovery Communications, LLC's proposed issuance of 10 year senior unsecured notes, sized at about $500 million.

Discovery plans to use the majority of the proceeds to repay short-term debt outstanding, including commercial paper and revolving credit.

The new notes will rank equally with Discovery’s existing senior unsecured notes and will be fully and unconditionally guaranteed by its indirect parent, Discovery Communications, Inc.

While the bond offering will add some incremental debt, leverage will remain well under 4 times adjusted debt-to-EBITDA, Moody’s said. There is no change to the Baa3 rating as a result of this transaction, and the outlook remains stable.

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