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
Approximately $10.2 billion of debt instruments affected
New York, October 06, 2010 -- Moody's Investors Service changed Univision Communications,
Inc.'s (Univision) rating outlook to stable from negative
following the company's announcements that it is amending its Program
License Agreement (PLA) with Grupo Televisa, S.A.B.
(Televisa; Baa1, stable outlook) in connection with a $1.2
billion cash investment in Univision by Televisa, and launching
a partial refinancing of its capital structure. The outlook change
reflects the reduced operating uncertainty provided by the extension of
the term of the PLA, which along with the proposed financing transactions
would reduce Univision's refinancing risk related to its sizable
2014 and 2015 debt maturities. Univision's B3 Corporate Family
Rating (CFR), B3 Probability of Default Rating (PDR), SGL-3
speculative-grade liquidity rating and debt instrument ratings
are not affected.
..Issuer: Univision Communications, Inc.
....Outlook, Changed To Stable From
Moody's assumes in the stable rating outlook that the refinancing,
PLA amendment and Televisa investment are completed as outlined by the
company. Televisa's investment and Univision's extension
of at least $3.25 billion of 2014/2015 maturities and regulatory
approval are conditions to the PLA amendments (which at closing of the
Televisa investment triggers an extension of the PLA term to 2020 from
2017). However, Univision
contemplates completing the proposed refinancing prior to the closing
of the PLA amendment and the receipt of Televisa's investment.
Moody's would re-evaluate the ratings and/or the rating outlook
if the proposed refinancing does not occur.
Univision's B3 CFR continues to reflect its very high debt-to-EBITDA
leverage (approximately 13x LTM 6/30/10 incorporating Moody's standards
adjustments and the effects of the proposed transactions and excluding
non-cash advertising revenue and certain add-backs such
as sponsor management fees that the company utilizes in its EBITDA calculation)
and continued, albeit lower, refinancing risk associated with
the remaining debt maturing in 2014/2015. Moody's estimates
Univision would have approximately $4.8 billion of debt
maturities in 2014/2015 after the proposed transactions (assuming all
of the proceeds from the Televisa investment are utilized to repay existing
debt) and reducing such maturities to $2.5 billion or less
is a condition to extending the term of the PLA to 2025 from 2020.
Moody's believes the $1.125 billion unguaranteed convertible
debenture at Broadcast Media Partners, Inc. (Univision's
ultimate parent) to be issued to Televisa is debt-like given the
instrument's 2025 maturity, 1.5% cash coupon
rate and liquidation preference ahead of common equity, based on
a preliminary review of the instrument's terms. Moody's
expects debt-to-EBITDA leverage to fall to a level slightly
below 12x by the end of 2010.
The stable rating outlook reflects Moody's view that the likelihood
of a downgrade in the near term is low if the proposed transactions are
completed as outlined, and that Univision will be able to meet its
debt service while steadily de-leveraging over the next two years.
Moody's also does not anticipate in the stable outlook a meaningful
deterioration in economic conditions over the period.
Moody's believes the extension of the PLA alleviates the uncertainty
that existed regarding Univision's continued access to exclusive
U.S. Spanish-language broadcast rights for Televisa's
popular programming beyond the existing 2017 PLA expiration and will be
beneficial to operations over the long-term. The initial
increase in the licensing fees (Televisa's royalty rate is increasing
to 11.91% from 9.36% on an expanded royalty
base) is manageable within Univision's cash flow and mitigated at
the outset by the elimination of certain soccer rights fees, and
additional programming income. Moody's anticipates the broader
rights Univision obtained to Televisa's programming (including cable
network and Mexican soccer league content) and in digital distribution
channels in the U.S. creates good potential for the company
to ultimately increase its revenue growth rate. Moody's anticipates
the increase in the license fee paid to Televisa in 2018 (royalty rate
is increasing to 16.22% from 11.91%) will
be roughly offset by the elimination of license fees being paid to Venezolana
del Television C.A. (Venevision) as Univision's PLA
with Venevision expires at the end of 2017. Moody's expects
Univision will utilize Televisa or internally-developed content
to replace the programming obtained from Venevision with minimal effect
Televisa's funding is a sunk cost once made and it has no further
investment commitments to Univision (Televisa obtains a 3-year
option exercisable three years after the initial investment to acquire
an additional 5% of Univision at a then agreed upon fair market
value, but any exercise is discretionary). Moody's
nevertheless believes Televisa may be motivated to preserve the option
value of its sizable potential equity position over the longer term provided
it has sufficient financial flexibility to do so.
The transactions do not meaningfully alter Univision's liquidity
position for the next 12 months. Cash interest costs will increase
due to the refinancings (net of any debt pay down with the proceeds from
the Televisa investment) and be a drag on free cash flow but Moody's believes
the increaes is manageable and the existing cash balance and projected
free cash flow should comfortably cover the $46.6 million
of required quarterly term loan amortization through March 2012 ($18.6
million thereafter). Any reduction of first lien senior secured
debt will modestly improve covenant headroom, although Moody's
anticipates Univision will maintain at least a 20% EBITDA cushion
within the maximum first-lien senior secured leverage covenant.
Moody's expects to assign ratings on the proposed bond and extended
portion of the credit facility in the near future. Univision is
evaluating how to utilize the $1.2 billion Televisa investment
proceeds, although Moody's anticipates they will be used to
repay existing debt. Moody's does not anticipate that the
mix of debt repaid will affect the B2 senior secured first lien rating
or the Caa2 rating on the senior unsecured PIK toggle notes. Loss
given default assessments are subject to change depending on the mix of
debt subsequent to the proposed transactions.
The last rating action was on June 24, 2009 when Moody's assigned
a B2 rating to Univision's 12% senior secured notes due 2014.
For additional information on Univision's ratings, please see the
credit opinion on www.moodys.com.
For the assignment of Univision's ratings, Moody's has used
its methodology for the Global Broadcast Industry, which can be
found at www.moodys.com in the Rating Methodologies sub-directory
under the Research & Ratings tab. Other methodologies and factors
that may have been considered in the process of rating Univision can also
be found in the Rating Methodologies sub-directory on Moody's website.
Univision, headquartered in New York, is the leading Spanish-language
media company in the United States. Annual revenue is approximately
John E. Puchalla
VP - Senior Credit Officer
Corporate Finance Group
Moody's Investors Service
Alexandra S. Parker
MD - Corporate Finance
Corporate Finance Group
Moody's Investors Service
Moody's Investors Service
Moody's changes Univision's rating outlook to stable
250 Greenwich Street
New York, NY 10007
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.