S&P assigns ratings to DirecTV Group's new debt offerings

NEW YORK—Standard & Poor's Ratings Services on Wednesday assigned ratings to DirecTV Group Inc.'s new debt offerings and raised the ratings on the satellite television company's unsecured senior notes one notch.

S&P assigned a "BBB-" rating to DirecTV's proposed $1 billion term loan due 2013, and a "BB" rating to its $1.35 billion of unsecured notes due 2016. A rating of "BBB-" is one notch above junk status, while a "BB" rating is two notches below investment grade.

S&P also affirmed the "BB" corporate credit rating on the company and raised the ratings on the company's 8.375 percent and 6.375 percent unsecured senior notes by one notch to "BB." The upgrade reflects DirecTV's improved business position, given that the company is able to "post solid subscriber growth at a time when most cable operators are struggling to retain their current video base," S&P said.

The El Segundo, Calif.-based company said Wednesday that its first-quarter profit rose 10 percent on more subscribers in the U.S. and Latin America.

The ratings outlook is stable.

DirecTV shares rose $1.28, or 5 percent, to $27.08 in afternoon trading. Shares have traded between $18.20 and $27.73 in the past 12 months.