Fitch rates Globo notes BBB+

Fitch Ratings said it assigned an expected BBB+ rating to Globo Comunicacao e Participacoes SA's proposed $200 million step-up senior notes due 2022.

The company has a local-currency issuer default rating of BBB+, foreign-currency issuer default rating of BBB+, national scale long-term rating of AAA(bra) and $325 million perpetual notes rating of BBB+.

The outlook is stable.

The step-up senior notes will be originated from Globo's $200 million senior notes issued in 2007 and will not represent any cash inflow to the company, Fitch said.

Globo will transfer the call option of all of the outstanding senior notes issued in 2007 to Pontis II Ltd., a Cayman Islands company unrelated to Globo.

The ratings reflect its continued strong business profile as the leading TV network in Brazil, the agency said.

The company's solid financial and liquidity position are underpinned by positive free cash flow generation and a comfortable debt maturity profile, Fitch said.

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