Fitch rates Scripps loan BBB+

Fitch Ratings said it assigned a BBB+ rating to Scripps Networks Interactive, Inc.’s new two-year $250 million senior unsecured term loan.

The proceeds from the term loan are expected to be used to tender for the remaining non-controlling interest in Polish television operator, TVN, Fitch said, and for general corporate purposes.

The outlook is negative.

The terms are similar to those of the revolving credit facility, including a maximum consolidated leverage ratio of 4.5x, the agency said.

The ratings reflect Scripps Networks’ portfolio of cable networks and leading home and lifestyle programming brands, Fitch said.

Acquisition of TVN is in line with the company’s international expansion strategy, the agency said.

Scripps Networks’ financial priorities remain consistent and focused on internal investment and international expansion, Fitch said.

But, the acquisition limits the company’s flexibility within the ratings category to accommodate operational missteps and share repurchases, the agency said.

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