Moody’s may upgrade Viacom

Moody's Investors Service said it put ratings for Viacom Inc. on review for upgrade following the announcement that the company entered a merger pact with CBS in an all-stock transaction.

Viacom shareholders will own about 39% of the combined company to be called ViacomCBS Inc.

“The review will focus on the organizational structure and debt structure, financial policy, and strategic direction for the combined company's assets. The legal structure of the combination and/or structural simplification or enhancement will be important in determining whether bondholders can reap the full benefits of the larger company,” said Moody’s in a news release.

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