U.S.-based outdoor advertiser CBS Outdoor Americas Inc. is seeking to raise $1.6 billion of debt in various tranches through two subsidiaries. We expect the company to use proceeds for an exchange payment to CBS Corp., net of working capital needs. We are assigning the company our 'BB-' corporate credit rating. Our stable rating outlook reflects our expectation that liquidity will remain adequate over the next 12 months, and that credit metrics will continue to improve only modestly based on growth in EBITDA as a result of limited potential for debt repayment because of the proposed REIT conversion. On Jan. 7, 2014, Standard&Poor's Ratings Services assigned New York-based outdoor advertiser CBS Outdoor Americas Inc. a 'BB-' corporate credit rating.
