S&P Rates Globopar's $300M Unsecured Nts BB-;Afms Rtgs.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 10/17/97 --Standard & Poor's today assigned its double-'B'-minus rating to Globo Comunicacoes e Participacoes Ltda.'s (Globopar) $300 million unsecured notes due 2007, guaranteed by TV Globo Ltda., TV Globo de Sao Paulo Ltda., TV Globo de Recife Ltda., and Radio Globo Capital Ltda. Proceeds from the issue will be used to refinance its short- and medium-term debt. At the same time, Standard & Poor's affirmed its triple-'B'-minus local currency and double-'B'-minus foreign currency credit ratings on Globopar. The local and foreign currency outlook is stable. Globopar is 100% owned by the Roberto Marinho Roberto Pisani Marinho (December 3, 1904 – August 6, 2003). Born in Rio de Janeiro, Brazil, Marinho was the president and founder of the biggest Brazilian TV channel, Globo. He came under criticism in the documentary Beyond Citizen Kane for his role at Globo. family, which also owns 92% of guarantor TV Globo. Globopar rents its television production facilities to TV Globo, which is the main source of the issuer's revenues. Globopar is also a holding company for companies involved in cable TV production and distribution, Direct Broadcast Satellite (DBS (Direct Broadcast Satellite) A one-way TV broadcast service from a communications satellite to a small round or oval dish antenna no larger than 20" in diameter. ), real estate, publishing, telecommunications equipment, telecommunications services and cellular telephone systems. In July 1997 a consortium formed by the Vicunha Group, Stet stet v. stet·ted, stet·ting, stets v.intr. To direct that a letter, word, or other matter marked for omission or correction is to be retained. Used in the imperative. v.tr. , and UGB UGB Urban Growth Boundary UGB Unternehmensgesetzbuch (Austrian Commercial Code) UGB Unguided Bomb (gaming) UGB Underground Building (Globopar's joint venture with Bradesco, Brazilian largest bank), won the exclusive license to operate Band-B cellular telephony in the states of Bahia and Sergipe. Currently, a joint venture consisting of Globopar, Bradesco and AT&T is bidding for a license to operate cellular communications services in the states of Rio de Janeiro Rio de Janeiro, city, Brazil Rio de Janeiro (rē`ō də zhänā`rō, Port. rē`  thĭ zhənĕē`r and Espirito Santo. The credit quality of Globopar reflects its strong position in the Brazilian media industry. TV Globo and the other guarantors own and operate five broadcast television stations in areas that account for 70% of Brazil's GDP GDP (guanosine diphosphate): see guanine. . Together with 102 affiliated stations, the owned stations form the TV Globo network (Rede Globo), the dominant free-to-air broadcaster, with a 59% average audience share during prime time. Rede Globo covers 99% of Brazilian territory and accounts for 72% of total television advertising in Brazil. Since the successful implementation of the Real Plan in 1994, the Globo TV stations have benefited from strong growth in advertising expenditures, with increasing share going to television, as mass advertisers capitalize on the rising consumption and purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. among low income groups. TV Globo has a modest debt leverage and strong profitability. However, since TV Globo revenues are generated in reais, the dollar denominated debt is exposed to exchange rate risk. OUTLOOK: STABLE The outlook for the foreign currency rating reflects Standard & Poor's rating outlook for the Republic of Brazil. The outlook for the local currency rating is also stable as the risks associated with the cellular bid and any adverse effects from currency devaluation Currency devaluation A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold. are factored into the rating, Standard & Poor's said. -- CreditWire CONTACT: Maria Lemos, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (1) 212-208-5428 Heather M Goodchild, New York (1) 212-208-1606 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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