Moody's may lift Viacom

Moody's Investors Service said it placed Viacom Inc.'s Baa3 senior unsecured long-term debt and Prime-3 commercial paper ratings on review for upgrade.

The possible upgrade reflects the potential for a loosening of qualitative governance-related rating factors that have constrained the company's ratings, as well as the likelihood of balance sheet de-leveraging, according to the agency.

Ratings have been constrained due to concern over ineffective corporate governance stemming from the company's relationship with its controlling shareholder National Amusements Inc., the agency said.

Viacom has sustained debt-to-EBITDA leverage comfortably under 3.25x over the past four quarters and the agency said it expects further improvement of credit metrics, the agency noted.

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