New York, November 17, 2014 -- Moody's Investors Service said that Time Warner Inc.'s ("Time Warner") Baa2 senior unsecured debt rating, Prime-2 short term debt rating and stable outlook will not be affected by its decision to provide credit support to Central European Media Enterprises Ltd. ("CME"--Caa1, Negative outlook). In 2009, Time Warner acquired a 31% stake in CME, a leading broadcaster operating various networks throughout Central and Eastern Europe, for $242 million, and has subsequently increased its voting interest to 49.9%. CME announced on November 14, 2014 that it has entered into a new Euro 250.8 million (approximately $312 million) senior unsecured credit facility due 2017, which is guaranteed by Time Warner and certain of its subsidiaries. CME will use proceeds under the new credit facility to redeem all of its Euro 240 million ($299 million) 9% senior notes due 2017 and pay the required redemption premium. CME will pay Time Warner a guarantee fee of 8.5% less the rate of interest paid to the lenders (between 1.28% to 2.11%) on amounts outstanding under the credit facility. CME concurrently announced that it has entered into a commitment letter with Time Warner to refinance its $261 million 5.0% Senior Secured Convertible Notes due 11/15/2015. The commitment letter provides that Time Warner will support CME in arranging a third party credit facility, guaranteed by Time Warner and certain of its subsidiaries, to refinance the 2015 Notes or will provide CME with a new term loan facility, on terms similar to CME's existing term loan agreement with Time Warner. CME also entered into an amended and restated revolving credit agreement with Time Warner to reduce the interest rates for loans made under the existing facility. CME also entered into an amended and restated term credit agreement and a reimbursement agreement in which CME agreed to pay guarantee and commitment fees and to reimburse Time Warner for amounts paid by Time Warner under these arrangements. All these arrangements will help CME to address its upcoming debt maturities in a cost-effective manner with support from its largest shareholder, Time Warner. Earlier in the year, Time Warner and CME entered into a multi-part financing agreement to address CME's short-term liquidity needs, under which Time Warner's total potential contribution was roughly $483 million.

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