DIRECTV Holdings LLC -- Moody's assigns Baa2 rating to DIRECTV Holding's proposed bond offering

New York, December 02, 2014 -- Moody's Investors Service assigned Baa2 ratings to DIRECTV Holdings LLC's (DTV Holdings) benchmark size issuance of senior unsecured bonds due 2025. The new notes will be issued by DIRECTV's operating subsidiary, DTV Holdings, and will rank pari passu with DTV Holdings' existing senior unsecured notes, also rated Baa2. Proceeds from the sale of notes will be used to refinance the company's $1.2 billion 3.55% senior unsecured notes due on March 15, 2015. Interest on the notes will increase by 25 basis points if the company's planned merger with AT&T Corp (A3, on review for downgrade) does not take place. The covenant package for the proposed notes is substantially the same as DTV Holdings' existing notes, including the reporting requirement language for bonds issued after 2010. Since the proceeds will be used to repay debt maturities, the transaction is essentially leverage neutral and will not impact DTV Holdings' Baa2 senior unsecured rating or Prime-2 short-term debt rating. The company's ratings, including the rating on the new bond offering, are on review for upgrade.

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