New York, August 12, 2013 -- Moody's Investors Service said that Twenty-First Century Fox, Inc. ("21st Century Fox") is expected to maintain credit metrics consistent with its Baa1 long-term rating, with leverage at or below 3.0x (including Moody's standard adjustments), based on the company's continued commitment to its current rating. Following the company's investor day comments, investors have voiced concerns about the company sustaining higher leverage metrics than it has previously. We believe that the company has significant financial flexibility for acquisitions and shareholder returns -- among the strongest of its peers over the intermediate term - given its large cash balance ($6.7 billion at 6/30/13), strong free cash flow generation ($2.4 billion for LTM 6/30/13), and strong revenue and EBITDA growth prospects. We expect 21st Century Fox to maintain slightly higher leverage to continue making moderate sized tuck in acquisitions, ramp up its dividend payout as well as fund greater share buybacks over the following year, though much of this activity will be funded via its cash balances, cash flow generation and debt capacity based on EBITDA growth. Based upon conversations with management we believe that the company will continue to maintain a conservative balance sheet such that the company remains solidly positioned in the Baa1 rating category.

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