CBS Corp. (CBS-A) has had some of their ratings affirmed by Fitch Ratings, a credit-rating agency.
The company, which received a "BBB" for their issuer default rating and senior unsecured debt rating, were said to be in line with the data Fitch has. "BBB" is an investment rating that is one grade above junk-bond status.
"The ratings continue to be supported by the company's solid credit protection measures and capital structure, strong position in traditional media advertising outlets and its ability to generate material amounts of free cash flow," Fitch said in a statement. "The rating is limited by the company's aggressive dividend policy, an above-average exposure to the cyclical advertising markets, and an overall risk of competing technologies within the radio and television broadcasting segment."
With Fitch now changing the future outlook of the company from "Negative" to "Stable," it should remain at that designation for some time.
Total debt for CBS as of Dec. 31, 2006 was around $7 billion, with $700 million due in May of 2007. The rest isn't due until 2010 or later according to Fitch.
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