Moody’s rates Charter Communications notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to the proposed secured notes of Charter Communications Operating, LLC (CCO), a wholly owned subsidiary of Charter Communications, Inc. (Charter).

Charter is also expected to issue an add-on to its unsecured notes due 2027 that was issued in January.

In total, the company is expected to issue $1.5 billion of new debt.

The company expects to use the proceeds for general corporate purposes, which may include share repurchases.

The Ba2 corporate family rating and Ba2-PD probability of default rating are unchanged.

The B1 unsecured rating of CCO Holdings, LLC, a wholly owned subsidiary of the company, is also unchanged.

The outlook remains stable.

Moody’s said Charter's Ba2 corporate family rating is supported by the incremental scale and expectation for expansion in EBITDA following Time Warner Cable, Inc.’s and BHN's acquisitions and integration. Following completion of the integration, the new entity is benefiting from stronger operating synergies, a larger geographic footprint and opportunities, enhanced margins and stronger free cash flow generation, the agency added.

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