S&P rates Viacom notes BBB-

S&P said it affirmed its ratings on Viacom Inc., including the BBB- corporate credit rating. The outlook remains negative.

At the same time, S&P assigned a BBB- issue-level rating to the company's 2.25% senior notes due February 2022 and 3.45% senior notes due October 2026.

S&P said it expects that Viacom will use the proceeds to repay its next two debt maturities ($400 million 2.5% senior notes due December 2016 and $500 million 3.5% senior notes due April 2017), reduce its outstanding commercial paper balance and pay down future debt maturities.

“The affirmation reflects our view that while we don't expect Viacom to be able to reduce its adjusted leverage to below our 3.25x target until at least 2018 without taking additional actions, there are other uncertainties regarding the company's future that could aid or hurt its deleveraging prospects and thus affect our ratings on the company,” said S&P credit analyst Naveen Sarma in a news release.

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