S&P cuts Viacom to BBB

Standard & Poor's said it lowered its corporate credit rating on Viacom Inc. to BBB from BBB+.

The outlook is stable.

At the same time, the agency lowered its issue-level ratings on the company's outstanding debt by one notch to BBB. It maintained the A-2 commercial paper rating.

S&P said the action follows the company's announcement that it was revising its net leverage target to 2.75x-3x from its current 2x-2.25x range. With the current adjustments for pensions and OPEBs, operating lease, and guarantees, Viacom's leverage range translates to about 3.25x-3.5x, versus the current 2.75x target, S&P said.

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