Moody's affirms Univision

Moody's Investors Service said it affirmed Univision Communications, Inc.'s B1 corporate family rating, B1 probability of default rating and associated debt ratings and changed the rating outlook to negative.

Moody's also said it assigned an SGL-3 speculative-grade liquidity rating, adding that the change in the rating outlook reflects the likelihood that projected proceeds from the music business and other planned asset sales will be lower than Moody's had anticipated at the time of the initial rating assignment in February 2007.

The asset sale shortfall and more difficult advertising market conditions could challenge Univision's ability to reduce debt-to-EBITDA, estimated at 12.3x for FY 2007 incorporating Moody's standard adjustments, to the 9.0x level for 2008 anticipated in the B1 rating and fund the maturity of the $500 million second lien asset sale bridge in March 2009, the agency said.

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