Moody’s assigns Viacom bonds Baa2

Moody's Investors Service said it assigned a Baa2 rating to Viacom Inc.'s new benchmark size bond issuance.

The new notes are senior unsecured obligations and will rank equally with the company's existing senior unsecured notes/debentures and future unsecured debt obligations.

The outlook is stable.

Proceeds will be used for general corporate purposes, including repayment of $600 million 1.25% senior notes due February 2015.

Because the proceeds will be used to prefund near-term debt maturities, the transaction is essentially leverage neutral. Moody’s said it believes the company is taking advantage of the low interest rate environment to lock in long-term financing and push out debt maturities.

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