Moody's rates VTR Globalcom loans B1

Moody's Investors Service said it assigned a B1 corporate family rating to VTR Globalcom SA, as well as to its proposed up to $725 million senior secured credit facilities.

The outlook is stable.

Moody's said the ratings reflect the company's small size and negative free cash flow as well as the fact that management is allowed to distribute excess funds to shareholders if financial covenants are met.

Supporting the rating are VTR Globalcom's strong market position in the Chilean cable television sector and sound credit protection measures for its rating category.

Moody's assigned the following ratings: corporate family rating, B1; up to $225 million equivalent (Chilean pesos) A term loan facility with final maturity in 2013, B1; $475 million B term loan facility with final maturity in 2014, B1; and up to $25 million equivalent (Chilean pesos) revolver facility with final maturity 6.5 years after the first drawdown date, B1.

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