Fitch gives BBB- to Discovery notes

Fitch Ratings said it assigned a BBB- rating to Discovery Communications, LLC's issuance of a series of senior notes having multiple maturities.

The outlook remains stable.

Proceeds are to be used to fund a portion of the company's $14.8 billion acquisition of Scripps Networks Interactive, Inc., announced July 31, and for related fees and expenses.

Fitch said it continues to view the Scripps acquisition positively.

“The combined suite of programming presents a unique opportunity for advertisers given that they represent 20% of all ad-supported linear U.S. aggregate television and prime time female viewership and five of the top 25 female skewing cable networks,” the agency said in a news release.

“In addition, the merger should provide significant cost synergies, which the company estimates totaling approximately $350 million. The company may realize revenue synergies but does not include any in their assumptions, in line with the company's estimates.”

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