Moody's rates Charter subsidiary Ba3

Moody's Investors Service said it assigned Ba3 corporate family and probability-of-default ratings to Charter Communications, Inc.'s indirect intermediate holding company CCH II, LLC.

The agency assigned a Ba2 rating (LGD2, 29%) to Charter Communications Operating, LLC's existing pre-petition first-lien bank debt and a B1 rating (LGD5, 74%) to its existing pre-petition second-lien notes. The existing pre-petition debt instruments of CCO Holdings, LLC, including a $350 million term loan and $800 million of existing senior unsecured notes, along with a projected $1.7 billion of new 13.5% senior unsecured notes due 2016 being issued by CCH II, were assigned ratings of B2 (LGD5, 88%).

The outlook is stable.

Ratings reflect a high level of financial risk and a steadily increasing level of operational risk given the heightened competitive environment, according to the agency.

These key credit risks are partially mitigated, however, by the company's large size and improving operating performance, along with the prospect of further gains given comparatively modest advanced service penetration rates to date, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.