S&P rates Charter Communications notes BBB-

S&P said it assigned its BBB- issue-level rating and 1 recovery rating to the proposed senior secured notes issued by Charter Communications Inc.'s subsidiaries Charter Communications Operating LLC and Charter Communications Operating Capital Corp.

The 1 recovery rating indicates an expectation for very high recovery for lenders (90%-100%; rounded estimate: 95%) in the event of a payment default.

S&P’s BB issue-level rating and 5 recovery rating on Charter Communications Inc.'s existing unsecured debt remain unchanged following its proposed $500 million add-on to the 5 3/8% unsecured notes due 2029 issued by its subsidiaries CCO Holdings LLC and CCO Holdings Capital Corp.

The 5 recovery rating indicates an expectation for modest recovery (10%-30%; rounded estimate: 25%) in a simulated default.

“Our BB+ issuer credit rating is unaffected because our base-case forecast already assumes about $2 billion-$3 billion of incremental debt in 2019 to fund share repurchases and anticipates that the company will maintain debt to EBITDA at the higher end of its 4.0x-4.5x target range,” S&P said in a news release.

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