Moody's rates NBC Universal notes Baa2

Moody's Investors Service said it assigned a Baa2 senior unsecured rating to NBC Universal, Inc.'s proposed new notes issuance. The new notes are anticipated to be split in multiple tranches.

The proceeds from the bond offering, together with the remaining proceeds from the notes issuance in April 2010 and, if necessary, borrowings under a new three-year credit agreement, will be used to make a cash distribution to General Electric Co. upon the closing of the pending joint venture deal with Comcast Corp.

The outlook is stable.

The new notes will be senior unsecured and unsubordinated obligations and will rank equally with the company's existing unsecured indebtedness, Moody's said.

The notes will not be guaranteed by any of NBC Universal's subsidiaries or by GE or Comcast, the agency said.

As part of the joint venture, NBC will incur total debt of $9.1 billion, consisting of $4 billion of senior unsecured notes issued in April 2010, the proposed new notes and, if necessary, an amount under its bank facility, Moody's said.

The ratings are based on the combined entity's iconic brands, large portfolio of cable networks, significant scale and broad geographic reach of the NBC network, the agency said.

The rating is supported by strong and consistent cash flow generation, Moody's said, and a governance-based limitation on the amount of incremental debt the company can incur.

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