S&P ups CBS view to stable

Standard & Poor's said it revised its outlook on CBS Corp. to stable from negative and affirmed its corporate credit rating at BBB-.

The agency said the outlook change reflects the company's moves to repay debt and refinance maturities - CBS has called its $415 million 7.7% senior notes due 2010, which it will repay with cash balances and cash flow - as well as continuing indications of recovery in its broadcasting and outdoor advertising businesses. S&P assumes that a combination of EBITDA growth and debt repayment will reduce fully adjusted debt leverage to 4.25 times by the end of 2010.

The BBB- rating reflects CBS' leadership positions in network TV, outdoor advertising and network and syndicated TV programming production and distribution, S&P said.

Audience fragmentation and the challenges of a weak economic recovery temper these positive rating factors, in the agency's view.

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