Moody's rates DirecTV bonds Baa2

Moody's Investors Service said it assigned Baa2 ratings to DirecTV Holdings LLC's (DTV Holdings) £350 million (about $560 million) senior unsecured sterling denominated bonds due 2033.

The new notes will be issued by DirecTV's operating subsidiary, DTV Holdings, and will rank pari passu with DTV Holdings' existing senior unsecured notes, also rated Baa2.

The net proceeds will be used for general corporate purposes, which may include the repayment or refinancing of debt, potential acquisitions and share repurchases.

The outlook is stable.

The new notes include the downstream guarantee from the parent company DirecTV that was put into place for all outstanding senior notes in November 2011. As a result, DTV Holdings' bondholders will have recourse to DirecTV's 100% equity interest in DirecTV Latin America Holdings, Inc. (DTV Latin America).

Moody's said the effective inclusion of DTV Latin America's operations in DTV Holdings' credit gives the company greater debt capacity on its balance sheet when considering its target reported consolidated leverage of 2.5x. DirecTV's debt-to-EBITDA leverage (including Moody's adjustments) was 2.5x at Sept. 30, and the agency anticipates the company will manage further debt issuance and share repurchase activity such that leverage is sustained at or below 2.75x.

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