S&P rates Viacom notes BBB+

Standard & Poor's said it assigned a BBB+ rating to Viacom Inc.'s proposed issuance of $500 million senior unsecured notes due 2017.

The proceeds will be used for general corporate purposes, including repayment of its $193 million senior unsecured notes due April 2011.

The transaction will have minimal effect on the company's leverage or other credit metrics, the agency said.

The long-term corporate credit rating on Viacom is BBB+ and the outlook is stable.

The rating reflects the company's satisfactory business risk profile as one of the premier operators of cable TV networks, which enjoy strong brand franchises, extensive distribution and pricing leverage with advertisers and cable and satellite system operators, S&P said.

The earnings volatility of its filmed entertainment business only slightly offsets the stable performance of the cable networks, the agency said.

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