S&P rates Charter Communications loan BBB-

Standard & Poor’s said it assigned its BBB- issue-level rating and 1 recovery rating to the proposed senior secured term loan H to be issued by CCO Safari III LLC (escrow entity), a subsidiary of Charter Communications Inc., and placed the rating on CreditWatch with positive implications.

Charter Communications Operating LLC (CCO) will ultimately assume the term loan if the escrow conditions are met.

Charter Communications will use the proceeds from the term loan to partially fund the acquisitions of Time Warner Cable Inc. and Bright House Networks.

The 1 recovery rating indicates S&P’s expectation for very high (90%-100%) recovery for lenders in the event of a payment default.

S&P said it placed the BBB- issue-level rating for the proposed term loan H on CreditWatch with positive implications because S&P expects to raise the rating on this debt by one-notch to BBB upon the close of the transactions. The BBB issue-level rating would be two notches higher than the expected BB+ corporate credit rating on parent Charter Communications Inc.

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