Fitch rates Univision notes B+

Fitch Ratings said it assigned a B+ rating with a recovery rating of RR3 to Univision Communications Inc.'s $400 million add-on to its 6 7/8% 2019 senior secured notes offering.

The company has a B issuer default rating.

The outlook is stable.

The proceeds will be used to repay a portion of the non-extended term loan due September 2014.

This transaction is a modest positive in that it extends a portion of Univision's nearest maturity, Fitch said.

With annual free cash flow of $250 million to $300 million, Fitch said it expects Univision will be able to easily manage these remaining 2014 maturities.

The ratings also incorporate a positive view on the U.S. Hispanic broadcasting industry, given anticipated continued growth in number and spending power of the Hispanic demographic, which is confirmed by U.S. census data, the agency said.

Concerns center on the highly leveraged capital structure and the significant maturity wall in 2017, as well as the company's significant exposure to advertising revenue, Fitch said.

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