September 17, 2012 / 3:12 PM / 5 years ago

TEXT-Fitch: event risk will continue to plague IG media issuers

Sept 17 - According to Fitch Ratings' fifth annual 'Credit Encyclo-Media'
report, changes in financial policy and acquisition risk (including the risk of
increased leverage) rank has the greatest event risk plaguing investment grade

In this year's edition Fitch has introduced an event risk analysis - the Event
Risk Dashboard - which lays out a series of event risk categories and Fitch's
opinion of the relative risk associated with each category. As with any event
risk, material changes in a company's financial or business position or events
(such as judgments or changes in regulation) that increase risk to bondholders
will likely lead to negative rating actions.

Fitch believes that the issuers under Fitch's coverage are committed to their
current ratings. However, actions, such as Dun & Bradstreet's willingness to
increase leverage to fund accelerated share repurchases, demonstrate the form of
event risk that can impact ratings.

Within individual event risk categories, Fitch notes that the concentrated
ownership/voting control in many media issuers, such as CBS, Viacom, Liberty
Interactive and Nielsen Company drive's Fitch's ranking of corporate governance
related event risk as high.

Fitch's 'Credit Encyclo-Media' report is a comprehensive analysis of the U.S.
media and entertainment sector with detailed data and opinions on 25 individual
issuers and 27 industry segments. In addition to the event risk analysis for
each company in Fitch's rated portfolio, this edition of the report includes an
expanded section on Tablets and e-books and over 100 new tables/charts.

The full 'Credit Encyclo-Media' is available at ''

Additional information is available at ''

Applicable Criteria and Related Research:
Credit Encyclo-Media Volume V: Fitch's Comprehensive Analysis of the U.S. Media
& Entertainment Sector

Our Standards:The Thomson Reuters Trust Principles.
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