S&P ups Discovery Com outlook to positive

Standard & Poor's said it revised its outlook on Discovery Communications Inc. and related issuer Discovery Communications LLC to positive from stable.

All ratings on the company, including the BBB- corporate credit rating, were affirmed, the agency said.

"The outlook change to positive reflects Discovery Communications' lower leverage ratio," noted S&P credit analyst Deborah Kinzer.

"In addition, it is its view that the company could improve its credit metrics further, given its earnings and cash flow generating ability and barring a major debt-financed acquisition or the implementation of significant shareholder-favoring activities."

The BBB- corporate credit rating reflects Discovery's respectable portfolio of cable TV networks, both domestically and overseas; stable revenue streams from affiliate agreements; good EBITDA margins from its mature networks; and good conversion of EBITDA into discretionary cash flow, S&P noted.

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