S&P rates Viacom notes BBB

Standard & Poor's said it assigned a BBB rating to Viacom Inc.'s new issue of $250 million senior unsecured notes due 2015.

The outlook is stable.

The agency said Viacom issued the six-year bonds and reopened the 10-year bonds it issued in August to repay about $550 million of bank borrowings and commercial paper incurred to fund a portion of its August tender offer for bonds maturing in 2011.

The rating reflects the company's standing among the premier operators of cable TV networks and the strong discretionary cash flow of the consolidated entity, Fitch said.

The volatile performance of Viacom's film business and declining audience ratings at some of the company's cable networks, particularly MTV, somewhat temper these positive factors, the agency added.

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