Fitch ups Viacom

Fitch Ratings said upgraded Viacom Inc.'s long-term issuer default rating to BBB+ from BBB, senior unsecured notes and debentures to BBB+ from BBB, senior unsecured bank facility due 2010 to BBB+ from BBB. The agency also said it affirmed its short-term issuer default rating at F2 and commercial paper at F2.

The outlook is stable.

Fitch said it expects Viacom to maintain the more conservative financial policy that the company has demonstrated in recent quarters.

Viacom exhibited a credit-friendly approach in 2009, reducing debt, extending near-term maturities and eschewing share buybacks, the agency said.

Concerns include Viacom's exposure to cyclical advertising, an increasingly fragmented landscape for some of the company's key targeted demographics, secular challenges related to time-shifting and the inherent volatility of the movie business, Fitch said.

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