RBR/TVBR wasn’t the only one to notice that Univision is coming up well short of its projected 500 million bucks from divestitures. Moody’s Investors Service affirmed its debt ratings for the Hispanic media giant, but changed its rating outlook to negative.
“The change in the rating outlook reflects the likelihood that projected proceeds from the music business and other planned asset sales will be lower than Moody’s had anticipated at the time of the initial rating assignment in February 2007. The asset sale shortfall and more difficult advertising market conditions could challenge Univision’s ability to reduce debt-to-EBITDA (estimated at 12.3x for FY 2007 incorporating Moody’s standard adjustments) to the 9.0x level for 2008 anticipated in the B1 rating and fund the maturity of the $500 million second lien asset sale bridge in March 2009. Downward rating pressure will result if liquidity weakens or if Moody’s determines that Univision is not making steady progress in reaching the 9.0x leverage level,” the ratings agency said.