Moody's raises QVC convertible

Moody's Investors Service said it upgraded QVC Global Corporate Holdings, LLC’s 3.5% senior exchangeable debentures (MSI exchangeables) due 2031 to B1 from B2. Moody's also affirmed Liberty Interactive LLC's corporate family rating at Ba3, probability of default rating at Ba3-PD and senior unsecured rating at B2. Concurrently, Moody's affirmed QVC, Inc.'s senior secured notes rating at Ba2. The SGL rating was also upgraded from SGL-2 to SGL-1.

“The upgrade reflects governance considerations including QVC Global Corporate Holdings, LLC (a subsidiary of QVC International) being added as the primary obligor of the senior exchangeable debentures, while Liberty Interactive LLC is a co-obligor. The structural change will enable cash generated from QVC's foreign operations to directly service the MSI exchangeables. The MSI Exchangeables are viewed senior in position to the debt at Liberty Interactive LLC but junior to debt obligations at QVC, Inc. and results in a B1 instrument rating. The upgrade to SGL-1 reflects Liberty's solid free cash flow generation and $2.95 billion revolver, which remains completely undrawn as of Dec. 31, 2020,” the agency said in a press release.

The outlook is stable.

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