Moody’s revises Cequel to positive

Moody's Investors Service said it changed the outlook for Cequel Communications Holdings I, LLC to positive from stable and affirmed its B3 corporate family rating.

The agency also affirmed Cequel's B3-PD probability of default rating, Ba3 senior secured rating and Caa1 unsecured rating. It said it could upgrade Cequel to B2 if the company maintains its strong performance and its full year audited financials remain consistent with the year-to-date trends.

Moody’s said the outlook change reflects the progress the company has made reducing costs over the last nine months following the change in ownership and management. Affiliates of Altice NV purchased a 70% equity stake in Cequel in late 2015 and implemented aggressive cost reductions that have resulted in a decline in leverage to 6.7 times for the last 12 months ended Sept. 30, from 8 times at the time of the acquisition (Moody's adjusted).

Cequel's progress with de-leveraging has outpaced Moody's expectations and has been achieved without any disruption to Cequel's subscriber metrics.

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