Moody's rates Atlantic Broadband facility, notes

Moody's Investors Service said it assigned first-time ratings of B2 and Caa1 for Atlantic Broadband Finance LLC's proposed senior secured bank credit facility and senior subordinated notes, respectively.

Moody's also assigned a B2 senior implied rating for the company and a B3 senior unsecured issuer rating for Atlantic Broadband.

The outlook is stable.

Moody's said the ratings broadly reflect concerns about execution risk, scale, and competition facing the new management team of the former Charter Communications systems, as well as the high level of financial leverage incurred to acquire the company's assets, balanced against the good intrinsic asset value underlying the debt and growing cash flows generated by the company's predominantly upgraded cable systems.

The ratings actions include assignment of a B2 rating to Atlantic Broadband Finance LLC's $90 million senior secured revolver due 2010, $30 million senior secured term loan A due 2011, and $275 million senior secured term loan B due 2011; a Caa1 rating to the company's $150 million senior subordinated notes due 2014; and a B3 senior unsecured issuer rating.

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