News Corp. rating upgraded at Fitch on strength of cable channels

News Corp. rating upgraded at Fitch

NEW YORK — Fitch Ratings upgraded News Corp. on Tuesday, saying the media conglomerate’s cable channel business should offset continuing declines at its newspapers.

The agency hiked News Corp.’s rating to “BBB+” from “BBB,” moving it higher into investment-grade territory.

Fitch said it has grown more confident that News Corp.’s “cable network division and prospects of that segments’ global positioning can largely offset pressure from some of the company’s print products.”

News Corp. publishes The Wall Street Journal, The New York Post and other newspapers, which have seen ad revenue fall during the recession and a rise in competition from Internet-based companies.

But growing profits at the Fox News Channel and other cable properties have helped News Corp. weather the downturn. Successful films such as “Ice Age: Dawn of the Dinosaurs” have also boosted profits.

Fitch said it expects that News Corp. will be able lean on the cable business by raising the fees it charges cable companies to run its channels and by launching new networks.

News Corp. shares rose 16 cents, or 1.2 percent, to $13.35 Tuesday.