S&P rates Univision notes B+

Standard & Poor's said it assigned a B+ rating to the proposed $500 million senior secured notes due 2022 of Univision Communications Inc.

The agency also assigned a recovery rating of 2, indicating 70% to 90% expected recovery in a default.

The ratings reflect the company's steep debt leverage and weak interest coverage because of its 2007 leveraged buyout, advertising pricing that is not commensurate with its audience share and weak trends in radio advertising, S&P said.

Univision's financial risk is considered highly leveraged and its business risk is satisfactory, supported by its position as the market-leading U.S.-based Spanish-language TV and radio broadcaster, the agency said.

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