Moody's ups Viacom

Moody's Investors Service said it raised Viacom Inc.'s long-term debt ratings to Baa1 from Baa2 and affirmed the company's prime-2 commercial paper rating.

The outlook is stable.

The upgrade reflects Viacom's steady debt reduction over the last couple of quarters, Moody's said, and a belief that leverage will be sustained at the new lower level.

With less than 35% of total revenue coming from advertising spending, Viacom is one of the least cyclically exposed companies among large diversified media conglomerates, Moody's said.

As a result, the company delivered relatively steady operating results, although down from prior years, and generated almost $2 billion in free cash flow in 2009 amid a severe media slump, the agency said.

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