S&P upgrades Univision

S&P said it upgraded Univision Communications Inc.’s issuer rating to B+ from B and removed all its ratings from CreditWatch, where it placed them with positive implications on April 14.

The upgrade follows Univision completing its merger with Televisa's media assets.

“We expect Univision's leverage will decline to the low-6x area in 2022. We estimate Univision's leverage was in the mid-7x area at the end of 2021 on a stand-alone basis. We expect the combined company's leverage will improve to the low-6x area in 2022 and potentially to the mid-5x area in 2023, due to a combination of EBITDA growth and growing cash balances, which we net against debt. In particular, we expect the combined company will benefit from an increase in streaming revenue as it further expands its ad-supported streaming service and launches its subscription-based streaming service in 2022,” S&P said in a press release.

The agency also finalized its B+ issue and 3 recovery ratings on Univision’s $1.05 billion senior secured term loan and $1.05 billion of senior secured notes.

The outlook is stable.

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