Moody’s rates Viacom bond Baa3

Moody's Investors Service said it assigned a Baa3 rating to Viacom Inc.'s new benchmark-sized bond issuance split in two tranches consisting of notes maturing in five- and 10-years.

The outlook is stable.

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

Unlike Viacom's existing debt, the new notes are subject to an interest rate adjustment provision under which the interest rate on the new notes will vary with the company's credit rating, the agency said.

Since the proceeds will be used to pre-fund near term debt maturities, the transaction is essentially leverage neutral and will not impact Viacom's Baa3 senior unsecured long-term debt rating or the stable outlook, Moody’s said.

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