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Press Release Source: Fitch Ratings on Tuesday October 11, 2011, 3:34 pm EDT
CHICAGO–(BUSINESS WIRE)– Fitch Ratings has upgraded the Issuer Default Rating (IDR) assigned to Universal City Development Partners, ltd. (Universal Orlando) to ‘BBB’ from ‘BB+’. A full list of rating actions follows at the end of this release. Universal Orlando is a wholly owned indirect subsidiary of NBCUniversal Media, LLC (NBCUniversal). Fitch currently maintains a ‘BBB’ IDR for NBCUniversal. Approximately $406 million of principal amount of debt at maturity as of Sept. 30, 2011 is affected by Fitch’s action.
Fitch’s rating actions follow NBCUniversal’s announcement that it successfully completed the previously announced consent solicitation and offer to guaranty Universal Orlando’s 8.875% senior notes due 2015 (senior notes) and its 10.875% senior subordinated notes due 2016 (subordinated notes).
as a result of the consent solicitation, NBCUniversal fully and unconditionally guarantees Universal Orlando’s senior notes and senior subordinated notes. Universal Orlando’s outstanding senior notes and senior subordinated notes will be pari passu with NBCUniversal’s outstanding senior unsecured notes. in exchange for NBCUniversal’s guaranty, a majority of the holders of Universal Orlando’s senior notes and subordinated notes agreed to certain amendments to the indentures governing the notes to conform the notes’ covenants and events of default to those contained in NBCUniversal’s $9.1 billion of outstanding senior notes.
from Fitch’s perspective, the conclusion of the consent solicitation is a modest positive event for NBCUniversal’s credit profile. The guaranty of Universal Orlando’s debt simplifies NBCUniversal’s capital structure and creates a single-level plane for the majority of NBCUniveral’s debt. Additionally, the guaranty affirms Universal Orlando’s strategic ties to NBCUniversal.
Fitch has upgraded following ratings with a Stable Rating Outlook:
Universal City Development Partners, ltd.
–IDR to ‘BBB’ from ‘BB+’;
–Senior unsecured debt to ‘BBB’ from ‘BB+’
–Senior subordinated debt to ‘BBB-’ from ‘BB’.
Additional information is available at ‘fitchratings.com’. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
Applicable Criteria and Related Research:
–’Corporate Rating Methodology’ (Aug. 12, 2011);
–’Short-Term Ratings Criteria for Non-Financial Corporates’ (Aug. 12, 2011);
–’Parent and Subsidiary Rating Linkage (Fitch’s approach to Rating Entities within a Corporate Group Structure)’ (Aug. 12, 2011);
–’Rating Global Telecoms Companies’ (Sept. 16, 2010).
Applicable Criteria and Related Research:
Corporate Rating Methodology
fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647229
Short-Term Ratings Criteria for Non-Financial Corporate
fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647249
Parent and Subsidiary Rating Linkage
fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647210
Rating Global Telecoms Companies – Sector Credit Factors
fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=550205
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Fitch Upgrades Universal Orlando IDR to ‘BBB’ Following Successful Consent Solicitation
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