Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
06 Oct 2010
Mexico, October 06, 2010 -- Moody's Investors Service and Moody's de Mexico today affirmed their
respective Baa1 and Aaa.mx ratings on Grupo Televisa, S.A.B.
(Televisa) upon the company's announcement of its planned USD1.2
billion investment in Univision. The outlook for the ratings is
On October 5th, 2010, Televisa announced a USD1.2 billion
cash investment in Univision Communications, Inc ("Univision",
B3 Stable), mostly in the form of convertible debentures due 2025.
The closing of the transaction, which will depend on certain conditions
precedent, should occur by the first quarter of 2011. Upon
closing, Televisa would hold, on a fully diluted basis,
about 35% of the capital of Univision. As part of the transaction,
the current PLA (Program Licensing Agreement) between the companies will
be changed and extended to 2020 from 2017.
"The ratings affirmation reflects Moody's expectation that Televisa's
management will continue to pursue an investment strategy that will maintain
the company's financial metrics at levels consistent with its current
ratings (Moody's adjusted financial leverage at less than 2.5
times and cash flow from operations as a percentage of debt of at least
30%)" said Nymia Alemida, Vice President - Senior
Analyst at Moodys. The ratings affirmation was also based on Moody's
understanding that Televisa will not hold controlling interest in Univision
and thus will not be exposed to the company beyond the amount of investment
just announced. The ratings affirmation considered as well that
Televisa's announced investment at Univision should trigger an improvement
in the latter's debt maturity profile, reducing Televisa's
investment risk. Moody's perceives the investment in Univision
as strategically positive, providing Televisa with growth opportunities
at a valuation multiple that reflects a low point in the advertising cycle.
Moody's expects that the announced USD1.2 billion investment in
Univision as well as the pending USD1.44 investment in Nextel Mexico
will be financed with cash on hand plus proceeds from new local 10-year
notes in the amount of up to MXN10 billion (equivalent to about USD770
million) expected to be issued before the end of the year. In this
scenario, Televisa's financial leverage is not likely to increase
materially beyond 2 times adjusted debt/EBITDA, as expected for
Televisa's ratings are supported by the group's strong competitive position
in the Mexican television and pay TV markets, its financial strength
and its stable operating performance. The company's advertisement-heavy
business model has proven resilient during the last economic downturn
in Mexico, in 2007-2009, and particularly when compared
to the company's international diversified media peers. Nominal
TV broadcasting sales in the last twelve months were slightly higher (by
2.7%) as compared to the trailing twelve months ended in
June 2009 and despite the deep economic recession, especially in
2009. Televisa's comfortable debt maturity profile for the next
several years also supports its ratings. Constraining Televisa's
ratings, however, are its smaller global scale in terms of
revenue when compared to diversified media peers and the company's lack
of transparency over its long-term leverage target.
Televisa's pending investments in Univision and Nextel Mexico will
reduce its financial flexibility given the significant depletion of its
dollar cash position once these investments are funded. However,
Moody's expects that Televisa will maintain a comfortable liquidity
position. We expect that the company will end 2010 with a minimum
of USD1 billion in cash, pro forma for the upcoming investments
in Univision and Nextel as well as the new local notes and future cash
flows. This cash position compares to total adjusted (for operating
leases and pension obligations) debt of USD3.5 billion as of June
2010, which mostly matures starting in 2016. Going forward,
while the company rebuilds its cash position, Moody's expects that
it will offset its exposure to foreign currency liabilities by entering
into foreign exchange swaps or other derivative arrangements that hedge
at least debt coupons for the following 12 to 24 months. Televisa
has substantial headroom under its maintenance financial covenants,
including those of relevant subsidiaries. As is the practice in
Latin America, Televisa does not maintain committed revolving credit
The stable outlook is based on Moody's belief that Televisa's
management will not put its current ratings at risk as it pursues its
investment strategy. The stable outlook also reflects Moody's expectations
that Televisa will maintain operating margins and leverage at around current
levels and a comfortable debt maturity profile. In addition,
Moody's assumes that Televisa will pay no dividends in 2010.
In the years to come, the agency believes that the company will
manage its cash outflows prudently so that cash on hand in U.S.
dollars does not fall below the amount of USD1 billion. In 2011,
the agency expects that, because of the large investments announced
recently, namely Nextel Mexico and Univision, Televisa will
refrain from paying dividends beyond the ordinary amount of MXN0.35
per share, or approximately USD80 million.
The group's ratings could experience upward pressure if it increases its
scale and diversification to the point that its credit metrics are less
susceptible to the potential impact of large acquisitions or capex.
Ratings could come under downward pressure if weak performance of the
company's core TV broadcasting, pay TV systems (DTH and cable) or
telecom businesses leads to credit metrics no longer consistent with the
current rating category, with gross debt to EBITDA sustained over
2.5 times and cash from operations trending down and sustained
below 30% of debt. In addition, Televisa's ratings
suffer downward pressure if cash on hand falls below USD1 billion,
held in U.S. currency.
The last rating action on Televisa's ratings were in September 1st,
2010 when Moody's Investors Service assigned a Baa1 global ratings and
Moody's de Mexico assigned an Aaa.mx national scale ratings to
Televisa's proposed up to MXN10 billion in senior unsecured Mexican notes
The principal methodology used in rating Grupo Televisa, S.A.B.
was Large Global Diversified Media Industry rating methodology published
in November 2007. Other methodologies and factors that may have
been considered in the process of rating this issuer can also be found
on Moody's website.
With its headquarters in Mexico City, Mexico, Grupo Televisa,
S.A.B. ("Televisa") is the largest diversified media
company in terms of market capitalization, in the Spanish-speaking
world. Last-twelve-months revenues as of June 2010
amounted to approximately USD4.3 billion and adjusted (for Moody's
standard adjustments) EBITDA margin reached 40%. Televisa's
main business is television broadcasting, which represents approximately
39.5% of revenues and 49% of Operating Segment Income,
as reported. Televisa has interest in the largest DTH (direct-to-home)
satellite service provider in Mexico as well as in three cable TV companies,
which offer video, broadband and telecommunication services.
Nymia C. Almeida
Vice President - Senior Analyst
Corporate Finance Group
Moody's de Mexico S.A. de C.V
Alexandra S. Parker
MD - Corporate Finance
Corporate Finance Group
Moody's Investors Service
Moody's de Mexico S.A. de C.V
Moody's affirms Televisa's Baa1/Aaa.mx ratings; outlook stable
Ave. Paseo de las Palmas
No. 405 - 502
Col. Lomas de Chapultepec
Mexico, DF 11000
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.