Fitch rates Univision notes B+

Fitch Ratings said it assigned a B+ rating with a recovery rating of RR3 to Univision Communications, Inc.'s 10-year senior secured notes offering.

The company has a B issuer default rating, B+ senior secured rating with a recovery rating of RR3 and senior unsecured rating of CCC with a recovery rating of RR6.

The outlook is stable.

The proceeds will be used to repay a portion of the non-extended $457 million term loan due September 2014 and the extended $5.6 billion term loan due March 2017.

As proposed, this transaction represents an incremental positive for Univision in that it will extend a portion of Univision's near-term maturity and modestly reduce its large 2017 maturity wall, Fitch said.

The ratings consider the positive view on the U.S. Hispanic broadcasting industry, given anticipated continued growth in number and spending power of the Hispanic demographic, the agency said.

Concerns include the company's highly leveraged capital structure and the significant maturity wall in 2017, limited free cash flow generation relative to total debt and the company's significant exposure to advertising revenue, Fitch said.

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