DIRECTV 2008 Annual Report Download - page 76

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THE DIRECTV GROUP, INC.
the next. Risk adjusted discount rates are not fixed and are subject to change over time. As a result,
changes in estimated future cash flows and/or changes in discount rates could result in a write-down of
goodwill or intangible assets with indefinite lives in a future period which could be material to our
consolidated financial statements.
ACCOUNTING CHANGES AND NEW ACCOUNTING PRONOUNCEMENTS
For a discussion of accounting changes and new accounting pronouncements see Note 2 of the
Notes to the Consolidated Financial Statements in Part II, Item 8 of this Annual Report, which we
incorporate herein by reference.
SECURITY RATINGS
Debt ratings by the various rating agencies reflect each agency’s opinion of the ability of issuers to
repay debt obligations as they come due and expected loss given a default. Ratings in the Baa range for
Moody’s Investors Service and the BBB range for Standard & Poor’s Ratings Services, or S&P,
generally indicate adequate current protection of interest payments and principal security, with certain
protective elements lacking. Ratings in the Ba range for Moody’s and the BB range for S&P, generally
indicate moderate protection of interest and principal payments, potentially outweighed by exposure to
uncertainties or adverse conditions. In general, lower ratings result in higher borrowing costs. A
security rating is not a recommendation to buy, sell, or hold securities and may be subject to revision
or withdrawal at any time by the assigning rating organization.
Currently, The DIRECTV Group has the following security rating:
Long-term
Corporate Rating Outlook
Standard & Poor’s ........................................... BB Stable
Currently, DIRECTV U.S. has the following security ratings:
Senior Secured Senior Unsecured Corporate Outlook
Standard & Poor’s ......................... BBBǁBB BB Stable
Moody’s ................................ Baa3 Ba3 Ba2 Stable
***
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