Moody’s raises Block notes to Ba3

Moody's Investors Service said it upgrades Block Communications, Inc.'s proposed new $500 million unsecured notes issuance to Ba3 from B1.

Proceeds will be used to refinance the company's existing secured term loan B and unsecured notes.

Moody’s said the upgrade of the notes reflects the change to the capital structure which is mostly dominated by one class of debt consisting of unsecured notes.

Block's Ba3 corporate family rating and Ba3-PD probability of default rating remain unchanged.

The stable outlook is unchanged.

The proposed transaction will favorably extend the maturity profile of Block as the notes will be extended five years to 2025, the agency explained. It also leaves almost all assets unencumbered.

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