Moody's rates Univision notes Caa2

Moody's Investors Service said it assigned a Caa2 rating to Univision Communications, Inc.'s proposed $500 million senior unsecured notes due 2021.

Univision's B3 corporate family and probability-of-default ratings as well as SGL-3 speculative grade liquidity rating are not affected.

The outlook is stable.

Proceeds will be used to fund a tender offer for about $460 million of its $1.75 billion senior toggle notes due March 2015/

Univision's B3 corporate family rating reflects its strong and leading market position and good intermediate-term growth prospects tempered by its very high leverage, vulnerability to cyclical advertising and high refinancing risk associated with 2014 to 2017 debt maturities, the agency said.

The risk of a restructuring of its highly leveraged balance sheet with a gross debt-to-EBITDA ratio of 13.3x remains elevated, particularly if economic conditions were to weaken, the agency noted.

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