S&P cuts Hasbro outlook to stable

Standard & Poor's said it revised its outlook on Hasbro Inc. to stable from positive.

The agency said that ratings on the company, including the BBB corporate credit rating, were affirmed.

"The outlook revision is based on intermediate-term execution risk associated with Hasbro's agreement with Discovery Communications Inc. to launch a new children's entertainment network in the fall of 2010, as well as the company's significant financial investment to create and develop new content for the network based on its brands," explained S&P credit analyst Andy Liu.

Hasbro will purchase a 50% interest in a joint venture holding assets of Discovery Kids in the U.S. from Discovery Communications for $300 million, according to the agency.

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