The 'BB+' corporate credit and senior unsecured debt ratings on diversified media holding company Liberty Media LLC reflect its large equity portfolio, and the growth prospects of its majority-owned and wholly owned operations. These factors are partially offset by the limitations of the company's hybrid operating- and holding-company structure, and our view that management's financial strategy could become more aggressive and shareholder favoring. Total debt outstanding was about $11 billion as of Dec. 31, 2006. Liberty has increased its efforts to swap equity stakes for operating assets. Along with the company's recently completed deal with IDT Corp., the pending transaction between Liberty and News Corp. (BBB/Watch Pos/--) represents an important redeployment of assets. In exchange for the News Corp. stake
