S&P: Univision outlook stable

Standard & Poor's said it revised the outlook on Univision Communications Corp. to stable from negative and assigned a B- rating to the company's $500 million senior secured notes due 2014 with 3 recovery rating.

"The outlook revision is predicated on the successful tender of the company's $500 million 7.85% senior secured notes due 2011 and refunding with the proposed offer proceeds," S&P analyst Michael Altberg said in a statement.

The B- corporate credit rating reflects Univision's highly leveraged capital structure and weak credit metrics since its 2007 leveraged buyout, failure to accomplish planned asset sales in a timely manner, advertising pricing that is not commensurate with its audience share and weak trends in TV and radio advertising, according to the agency.

Univision's position as the dominant U.S.-based Spanish-language broadcaster, favorable long-term contracts and positive trends in Spanish-language population and viewing are some strengths, the agency noted.

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