S&P gives BBB to Viacom notes

Standard & Poor's said it assigned its BBB issue-level rating to Viacom Inc.'s proposed issuance of five-year 10-year notes and 30-year senior debentures.

S&P said the ratings on Viacom Inc. reflect its assessment of the "satisfactory" business risk profile and "intermediate" financial risk profile.

Viacom's networks enjoy strong brand franchises among younger demographics (despite competitors gaining viewer share from Nickelodeon in 2012-2013), extensive distribution and pricing leverage with advertisers and multichannel service providers.

The earnings volatility and subpar margin of Viacom's filmed entertainment business only slightly offsets the largely stable performance and above-average profitability of the cable networks, the agency said.

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