New York, February 05, 2014 -- Moody's Investors Service said that Time Warner Inc.'s ("Time Warner") announcement to increase its net debt leverage target from up to 2.5x to up to 2.75x over the next few years will not impact the company's Baa2 long term senior unsecured debt and Prime-2 short term debt ratings or the stable outlook. "While the high end of the company's revised leverage target is closer to our 3.75x sustained leverage threshold for downward rating pressure, management's reiteration of its commitment to a strong balance sheet and solid investment grade credit ratings, supports our view that the company will continue to maintain conservative financial policies and defend its Baa2 long term debt ratings", stated Neil Begley, Senior Vice President at Moody's. The higher leverage target moderately reduces financial flexibility over the near to intermediate term but will not put pressure on Time Warner's current debt ratings as we expect the company will sustain gross debt to EBITDA below 3.75x (incorporating Moody's standard adjustments) over the rating horizon.

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