Fitch: Viacom notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Viacom Inc.'s proposed issuance of five- and 10-year senior unsecured notes.

The proceeds will be used for debt reduction and share repurchases.

Viacom has an issuer default rating of BBB+, senior unsecured notes and debentures rating of BBB+, along with the BBB+ rating on its senior unsecured bank facility due 2013, short-term issuer default rating of F2 and commercial-paper rating of F2.

The outlook is stable.

The notes will be issued under Viacom's existing indenture and will be pari passu with all existing debt, Fitch said.

The ratings are underpinned by strong cash generating ability, led by the operating dynamics of its core cable networks and its overall global prominence of its brands, the agency said.

Ratings concerns include Viacom's exposure to cyclical advertising and an increasingly fragmented landscape for some of the company's key targeted demographics, Fitch said.

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