Moody's may up Viacom

Moody's Investors Service said it placed Viacom Inc.'s long-term debt ratings on review for possible upgrade and affirmed the company's prime-2 commercial paper rating.

The review is prompted by debt reduction and positive operating trends, which have led to an improvement in the company's credit metrics, Moody's said.

Moody's said it expects that Viacom's de-leveraging trajectory will continue over the near-term as the economy recovers and debt-to-EBITDA leverage will decline to less than 2.25x by the year's end.

Over the past year, Viacom reduced costs and demonstrated solid business execution, which resulted in strong free cash flow generation despite challenging macroeconomic conditions, the agency said.

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