COMPANY TOWN ANNEX

CBS Debt Faces Downgrade: Credit rating agencies Standard & Poor’s Corp., Moody Investors Service and Duff & Phelps all said they may lower CBS Inc.’s debt rating as a result of its proposed merger with QVC Inc. Approximately $590 million of debt is affected. Under the proposed merger, CBS shareholders will own 54% of the merged company and QVC shareholders will own 46%. As part of the $2.8-billion, or $175 per share, payout to CBS shareholders the network is expected to borrow an additional $1.5 billion, increasing the merged company’s debt to more than $2 billion. After skyrocketing $50 on Thursday, CBS stock fell $6 to $307. QVC eased 25 cents to $37.75.