S&P boosts Liberty, QVC

Standard & Poor's said it raised Liberty Interactive Corp.'s corporate family rating to BB from BB- and removed all ratings from CreditWatch, where they were placed with positive implications in July.

The outlook is stable.

The recovery rating on unsecured debt is unchanged at 4, indicating 30% to 50% expected recovery in a default.

The agency also said it raised the corporate credit rating on QVC Inc., Liberty Interactive's wholly owned subsidiary, to BB from BB-, along with its senior secured debt to BBB- from BB+.

The recovery rating is unchanged at 1, indicating 90% to 100% expected recovery in a default.

The upgrade is based on an analysis of the split-off and a view that Liberty Interactive's financial policy, especially with respect to future major investments and acquisitions, will likely be more focused on retail and e-commerce, S&P said.

The ratings reflect management's shareholder-favoring policy, including a history of split-offs and debt-financed share repurchases, the agency said.

But the company's sizable equity portfolio and the solid business prospects of QVC partially mitigate this negative factor, S&P said.

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