Moody's rates CCO notes B1

Moody's Investors Service said it assigned a B1 (LGD4, 66%) rating to the proposed $750 million issuance of senior notes due 2020 to be issued by CCO Holdings, LLC, an indirect intermediate holding company of Charter Communications, Inc. and CCH II, LLC.

The agency also affirmed CCO Holdings' existing senior notes at B1 with a revised loss-given-default assessment of LGD4, 66% (previously LGD5, 71%) and upgraded the company's $350 million senior secured first-lien credit facility due 2014 to Ba2 (LGD3, 36%) from Ba3 (LGD3, 46%).

The agency downgraded CCH II's speculative grade liquidity rating to SGL-2 from SGL-1 and affirmed its Ba3 corporate family and probability of default ratings.

The agency affirmed Charter Communications Operating, LLC's credit facilities at Ba1 (LGD2, 16%) and its senior secured second-lien notes at Ba2 (LGD3) with a revised loss-given-default rate of 31% (previously 42%).

The outlook remains positive.

The company plans to use proceeds primarily to tender for second-lien bonds due April 2012 and September 2014 issued by Charter Communications Operating and senior notes due November 2016 issued by CCH II.

The agency said the transaction favorably extends the maturity profile without materially impacting leverage and could modestly reduce interest expense.

Notwithstanding the improvement in the maturity profile, Moody's lowered Charter's speculative grade liquidity profile because its liquidity, while still "good," was somewhat depleted by recent share repurchase and acquisitions.

The positive outlook continues to reflect Charter's steadily improving credit profile and expectations that its enhanced financial flexibility will afford the company greater opportunity to invest, which should increase asset value and facilitate further balance sheet strengthening over time, the agency 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.