S&P assigns CW Media B, loan B+, notes CCC+

Standard & Poor's said it assigned its B long-term corporate credit rating to CW Media Holdings Inc., a company formed to enable GS Capital Partners VI LP to purchase the broadcast division of Alliance Atlantis Communications Inc. (BB/Watch negative) for about C$1.44 billion.

The outlook is negative.

At the same time, S&P said it assigned its B+ senior secured bank loan rating with a recovery rating of 2 to CW Media's planned C$525 million senior secured bank facility.

The agency said it also assigned a CCC+ debt rating to the company's proposed C$365 million senior unsecured discount notes due 2015, adding that the unsecured notes are rated two notches below the corporate credit rating because of the significant amount of first-lien priority debt in the capital structure as a percentage of total assets and the resultant minimal residual asset value in a downside scenario.

According to S&P, the ratings on CW Media reflect its high financial risk resulting from the proposed leveraged acquisition of Alliance Atlantis' broadcast business, only slightly offset by the company's solid business position in the specialty television broadcasting and operating performance.

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