S&P lifts Cox view to stable

S&P said it affirmed all of the ratings, including the BBB corporate credit rating, on Cox Enterprises Inc.

The agency also said it affirmed the ratings on subsidiary Cox Communications Inc.

The outlooks also were revised to stable from negative.

S&P also said it affirmed the A-2 short-term commercial-paper rating on Cox Enterprises.

The outlook revision reflects Cox Enterprises' improvement in key credit metrics, including its adjusted debt-to-EBITDA ratio, since it completed its acquisition of Dealertrack in 2015, the agency said.

Since that time, leverage improved to about 2.7x in 2016 from about 3.3x due primarily to EBITDA growth from the cable and auto business segments, the agency said, as well as realized synergies from the Dealertrack acquisition.

Furthermore, the agency said it expects the company will maintain a modest financial policy so that leverage remains at less than 3x.

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