CBS Corporation -- Moody's assigns a Baa2 rating to CBS Corporation's proposed note issues of benchmark size

New York, August 11, 2014 -- Moody's Investors Service assigned a Baa2 rating to CBS Corporation's ("CBS") proposed benchmark size senior unsecured notes offering, anticipated to be split in five, ten and thirty year maturities. The new notes will be senior unsecured obligations of CBS and will rank equally with all of CBS's other unsecured and unsubordinated obligations. The notes will be guaranteed by CBS Operations Inc., a wholly owned subsidiary of CBS. Concurrently, CBS launched a tender offer to repurchase the outstanding 8.875% senior notes due 2019, 7.875% debentures due 2023, 7.875% debentures due 2030 and 7.125% senior notes due 2023. Proceeds from the new notes issuance will be used to repurchase the tendered notes, for general corporate purposes and to repay other borrowings, including amounts outstanding under the company's commercial paper program, which had $381 million outstanding under it 6/30/2014. We expect this transaction will not add material debt to CBS's total borrowings and will be largely neutral to the company's total debt-to-EBITDA ratio, which we estimate at approximately 2.4x as of 06/30/2014 (incorporating Moody's standard adjustments and pro forma assuming CBS Outdoor Americas Inc.'s spin-off occurred at the beginning of the period). The rating outlook for CBS is stable.

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