S&P rates Viacom notes BBB

Standard & Poor's said it assigned a BBB rating to Viacom Inc.'s (BBB/stable/A-2) proposed $500 million senior unsecured notes due 2017 and $250 million senior debentures due 2037.

Proceeds will be used to refinance commercial paper and other debt.

According to S&P, the rating reflects Viacom's standing as cable TV operator, the potential for strong discretionary cash flow, the agency's outlook regarding a sustainable turnaround of Paramount and DreamWorks in the near term and its expectation that management will maintain moderate leverage.

These factors are somewhat tempered by the greater earnings volatility of the film entertainment business, S&P said.

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