Fitch rates Universal City notes BB+, BB

Fitch Ratings said it affirmed the BBB issuer default rating on NBC Universal Media, LLC, a direct wholly owned subsidiary of NBC Universal, LLC.

Fitch assigned an initial BB+ issuer default rating to Universal City Development Partners, Ltd., a BB+ issue rating to Universal Orlando's 8 7/8% senior notes and a BB issue rating issue rating to its 10 7/8% senior subordinated notes.

The outlook for NBC is stable.

The rating actions follow NBC's announcement that the company has entered into definitive agreements with affiliates of the Blackstone Group, LP to purchase its 50% equity interest in Universal Orlando for about $1.025 billion, the agency said.

The proposed transaction does not meaningfully increase the business risks related to NBC's credit profile, the agency said. The transaction increases NBC's exposure to the more economically sensitive and cyclical theme park business.

The ratings assigned to Universal Orlando reflect its globally recognized brand and intellectual property position, limited direct competition, relatively high barriers of entry into the U.S. theme and amusement park industry and the company's strong free cash flow, the agency said.

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