Fitch Ratings lowered Scripps Networks Interactive Inc.'s long-term issuer default rating and issue ratings to BBB- from BBB+, following the completion of the company's acquisition by Discovery Communications Inc.
The rating agency also withdrew the rating on Scripps' senior unsecured revolver that was terminated upon the closing of the acquisition. The ratings outlook is stable.
The downgrade reflects Fitch's expectations that the existing Scripps unsecured notes will likely be exchanged for new Discovery notes that will rank pari passu with Discovery's existing and prospective unsecured debt.
The agency plans to withdraw Scripps' issuer default rating and the senior unsecured notes' issue ratings upon completion of Discovery unit Discovery Communications LLC's exchange offer for Scripps' notes.
