Fitch Rates Televisa's MXN6.5 Billion Proposed Issuance 'BBB+' and 'AAA(mex)'

  Fitch Rates Televisa's MXN6.5 Billion Proposed Issuance 'BBB+' and
  'AAA(mex)'

Business Wire

MONTERREY, Mexico -- April 29, 2013

Fitch Ratings has assigned an international scale rating of 'BBB+' and a
national scale rating of 'AAA(mex)' to Grupo Televisa, S.A.B.'s (Televisa) up
to MXN6.5 billion proposed senior notes due 2043.

KEY RATING DRIVERS

Televisa's 'BBB+' rating continues to reflect the company's strong business
position as the leading Mexican TV Broadcaster and one of the largest media
companies in the Spanish-speaking world, diversified media and
telecommunications portfolio, solid financial position characterized by its
robust free cash flow generation and liquidity, as well as extended debt
maturity profile. The ratings incorporate the latest large cash investments in
Univision Communications, Inc. (Univision) and Mexican mobile operator
Iusacell, exposure to domestic economic cycles and increased regulation in
Mexico.

Continued Robust Cash Flow From Content Segment:

Televisa's high quality in-house content production has allowed it to maintain
its leading position as the largest television broadcaster in Mexico, with
stable audience and market shares in the national advertising industry. In
addition, the company distributes its content to more than 50 countries, more
importantly in the United States (U.S.) through a Program License Agreement
(PLA) with Univision in place until 2025, which provides additional revenue at
minimal cost, adding geographic and currency diversification. Television
advertising segment in Mexico is in a mature stage; recently the Mexican
Government announced its intention to start an auction process for new
frequencies in the open television segment. Fitch does not anticipate material
effects on the company's operations in the near term related to this event.

Diversifying Operations:

Televisa's growth in the telecom and Pay TV segments has resulted in increased
diversification from the Content segment revenues. This diversified business
portfolio underpins the company's stable operating and financial performance.
Integration between content production and solid distribution channels is
strategic for the company, which in turn strengthens the company's business
profile compared to its peers in other countries. For the last 12 month (LTM)
period ended March 31, 2013, the company generated EBITDA (according to Fitch,
Consolidated Operating Income plus Depreciation and Amortization) of MXN27
billion, from which the Content business division represented 53%, Sky 24%,
and Cable and Telecom 21%.

Economic Activity Correlation And Regulatory Environment:

The ratings consider the exposure to domestic economic activity increased
regulation going forward. The upcoming telecommunications law in Mexico,
expected to become enforced during this year once the secondary laws are
passed by congress, is expected by Fitch to have an impact on Televisa's
results, reflecting increased competition, asymmetric regulation and the
obligation to implement must-offer and must-carry provisions. However, Fitch
believes that Televisa's cash generation allows it to maintain a stable
financial profile and provides flexibility to manage its leverage levels and
debt structure.

Strong Cash Generation:

Fitch expects synergies across Televisa's businesses - content production,
distribution platforms and telecom infrastructure - with growing revenues
driven by increased subscriber base in pay television platforms and higher
royalties from Univision to contribute to the company's growth and cash flow
strength. On the other hand, Fitch expects important capex in 2012 and 2013,
as the company continues investing in cable & telecom infrastructure and Sky,
among others.

Solid Financial Profile:

Televisa's credit metrics are expected to remain solid. For the LTM ended
March 31 2013, total debt including satellite leases to EBITDA (calculated by
Fitch) was 2.1x from 2.2x and 2.4x at the end of 2012 and 2011, respectively,
while net debt considering cash, cash equivalents and temporary investments to
EBITDA was 1.2x, 1.3x and 1.5x in the same periods. Fitch expects robust cash
flow from operations in the next years as business investments mature, in
addition to relatively stable debt levels. The company's liquidity, albeit
reduced from past years levels, continues to be strong and is expected to
remain stable with moderate future improvements. The company does not face
important debt maturities until 2016 when approximately USD700 million in bank
loans come due and USD500 million in senior notes in 2018. Proceeds from the
proposed senior notes issuance are expected to be used for general corporate
purposes.

RATINGS SENSITIVITY

Televisa's ratings incorporate for the long term a total debt to EBITDA ratio
of close to 2.0x and net debt to EBITDA between 1.0x-1.5x. Expectations of
sustained increases in leverage beyond these ratios could pressure Televisa's
credit quality. On the other hand, international and business diversification
in conjunction with constant strengthening of free cash flow and reductions in
leverage levels could be seen as positive for the ratings.

Fitch currently rates Televisa as follows:

--Local currency Issuer Default Rating (IDR) 'BBB+';

--Foreign currency IDR 'BBB+';

--Senior unsecured notes issuances 'BBB+';

--National long term rating 'AAA(mex)';

--Certificados Bursatiles issuances 'AAA(mex)'.

Additional information is available 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology' (Aug. 08, 2012);

--'National Ratings Criteria' (Jan. 19, 2011).

Applicable Criteria and Related Research

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684460

National Ratings Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=595885

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=789864

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Contact:

Fitch Ratings
Primary Analyst
Alberto Moreno
Senior Director
+52-81-8399-9100
Fitch Mexico S.A. de C.V.
Prol. Alfonso Reyes 2612
Monterrey, N.L., Mexico
or
Secondary Analyst
Velia Valdes
Analyst
+52-81-8399-9100
or
Committee Chairperson
Sergio Rodriguez, CFA
Senior Director
+52-81-8399-9100
or
Media Relations:
Elizabeth Fogerty, New York, +1 212-908-0526
Email: elizabeth.fogerty@fitchratings.com