Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ 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 inform​ation 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

1.            Unless 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.               

2.            You 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 Information.

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.​​​​

I AGREE
Rating Action:

Moody's assigns a Caa2 rating to Univision's new senior unsecured notes

Global Credit Research - 09 Nov 2010

Approximately $500 million of debt affected

New York, November 09, 2010 -- Moody's Investors Service assigned a Caa2 rating to Univision Communications, Inc.'s (Univision) proposed $500 million senior unsecured notes due 2021. Univision plans to utilize the net proceeds from the notes to fund a tender offer for approximately $460 million of its $1.75 billion senior toggle notes due March 2015 (2015 Toggle Notes) and related tender/transaction costs. Univision also indicated that HSR regulatory approval was received for its proposed transactions with Grupo Televisa, S.A.B. (Televisa; Baa1, stable rating outlook). Univision's B3 Corporate Family Rating (CFR), B3 Probability of Default Rating (PDR), SGL-3 speculative-grade liquidity rating and stable rating outlook are not affected.

Assignments:

..Issuer: Univision Communications, Inc.

....Senior Unsecured Regular Bond/Debenture due 2021, Assigned Caa2, LGD6 - 92%

RATINGS RATIONALE

The proposed note offering favorably extends Univision's maturity profile and further reduces the concentration of maturities in 2014/2015, which were cut considerably through the company's October 2010 refinancing transactions. Moody's believes the transaction is a continuation of Univision's efforts to proactively improve its capital structure and maturity profile, although refinancing risk through 2017 and leverage remain high.

Moody's estimates Univision will have approximately $2.9 billion of debt maturing in 2014/2015 upon completion of the proposed bond offering. An event of default will occur if the previously announced $1.2 billion proposed cash investment from Televisa is completed and Univision does not utilize at least $1.1 billion of the proceeds to retire 2015 Toggle Notes by the later of March 31, 2011 or 45 days after the Televisa investment closes. Moody's anticipates Univision will exercise the call option or retire by some other means at least $1.1 billion of the 2015 Toggle Notes (initially callable on March 15, 2011 at 104.875) from the Televisa investment proceeds and this would further reduce 2014/2015 maturities to approximately $1.8 billion.

Completion of the Televisa transactions is factored into the rating, but Moody's believes the HSR approval satisfies the last meaningful contingency to closing the transactions (the October 2010 refinancing satisfied the maturity extension conditions). Moody's anticipates the proposed refinancing and Televisa investment and related transactions will meet the condition (reducing 2014/2015 maturities to $2.5 billion or less by 2/28/14) to further extend the term of the Program License Agreement (PLA) with Televisa to the later of 2025 or seven and a half years after Televisa disposes of at least 2/3rds of its 35% investment. Such extension provides greater assurance that Univision will retain access to a material source its programming, which benefits long-term operating cash flow generation.

Because Univision elected to PIK the March 2011 coupon on the 2015 Toggle Notes, the proposed offering will increase cash interest expense in 2011's first half. However, the offering is projected to reduce cash interest costs slightly in the second half of 2011 and beyond as Moody's expects Univision will elect to pay cash interest on the 2015 Toggle Notes (interest accrues at 10.5% if the PIK election is made, but the rate is 9.75% if paid in cash) beginning in September 2011 and the proposed 2021 notes are likely to have a lower coupon. Moody's estimates annual run rate cash interest costs following the Televisa investment and use of proceeds thereof, the proposed note offering and tender offer, and an assumed cash interest election on the 2015 Toggle Notes will be in a $560-575 million range (including the effect of swaps) vs. approximately $471 million for the LTM period ended 9/30/10 (excluding the $170 million of LTM interest paid-in-kind on the 2015 Toggle Notes, which coupon payments are required to be paid in cash beginning in March 2012).

The new notes will be guaranteed by all of Univision's domestic operating subsidiaries that guarantee its senior secured credit facility. The Caa2 rating and LGD6-92% assessment on the proposed senior unsecured notes reflect their effective subordination to the material amount of secured debt. The notes would likely absorb significant loss in the event of a default. Moody's does not anticipate that the anticipated debt repayment from the Televisa investment proceeds will affect the Caa2 rating on the proposed senior unsecured notes, although loss given default assessments are subject to change.

Univision's B3 CFR reflects its strong and leading market position in Spanish-language media within the United States and good intermediate-term growth prospects tempered by its very high leverage, vulnerability to cyclical advertising and high refinancing risk associated with 2014-2017 debt maturities, although recent refinancing transactions have alleviated this concern to some extent. Growth prospects supported by Hispanic demographic trends, as well as the market position and strong operating margins support Univision's unlevered cash flow generation. The risk of a restructuring of its highly leveraged balance sheet (gross debt-to-EBITDA is approximately 13.3x LTM 9/30/10 incorporating Moody's standard adjustments and excluding non-cash advertising revenue) nevertheless remains elevated, particularly if economic conditions were to weaken.

A deterioration in liquidity including an inability to achieve and sustain positive free cash flow, a decline in projected covenant cushion, heightened concern that maturities cannot be refinanced, renewed economic weakness, or heightened risk of a discounted debt repurchase or other restructuring, could result in a downgrade. The ratings will also be vulnerable to a downgrade as long as debt-to-EBITDA is above 10x, although a downgrade may not occur if the company has adequate liquidity given the potential for meaningful de-levering during economic expansions.

Good operating execution or an equity offering that leads to consistent free cash flow generation and debt reduction after factoring in all capital costs (including PIK interest), debt-to-EBITDA sustained below 8.5x and free cash flow (under the assumption that all interest is paid in cash) exceeding 3% of debt could position the company for an upgrade. A good liquidity position including a high degree of confidence that Univision can refinance its maturities and maintain access to Televisa's programming would be necessary for an upgrade.

The last action was on October 20, 2010, when Moody's assigned a B2 rating to Univision's $750 million senior secured notes due 2020, and B2 ratings to the amended and extended term loan and revolver portion of the company's senior secured credit facility.

For additional information on Univision's ratings, please see the credit opinion on www.moodys.com.

The principal methodologies used in this rating were Global Broadcast Industry published in June 2008, Global Standard Adjustments in the Analysis of Financial Statements for Non- Financial Corporations - Part I, published in February 2006, and Probability of Default Ratings and Loss Given Default Assessments Methodology published in June 2009.

Univision, headquartered in New York, is the leading Spanish-language media company in the United States. Revenue for the LTM ended 9/30/10 was approximately $2.2 billion.

REGULATORY DISCLOSURES

Information sources used to prepare the credit rating are the following: parties involved in the ratings, parties not involved in the ratings, public information, confidential and proprietary Moody's Investors Service's information, confidential and proprietary Moody's Analytics' information.

Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of assigning a credit rating.

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.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

New York
John E. Puchalla
VP - Senior Credit Officer
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Neil Begley
Senior Vice President
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's Investors Service
250 Greenwich Street
New York, NY 10007
U.S.A.

Moody's assigns a Caa2 rating to Univision's new senior unsecured notes
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.