S&P rates Cequel notes B-

Standard & Poor's said it assigned a B- rating and 6 recovery rating to Cequel Communications Escrow I LLC's proposed $500 million of senior unsecured notes due 2020 with Cequel Communications Escrow Capital Corp. as co-issuer.

The 6 recovery rating indicates 0% to 10% expected recovery in a default.

The proceeds will be used to fund a portion of the purchase price for the acquisition of cable-TV operator Cequel Communications Holdings LLC by BC Partners and the Canada Pension Plan Investment Board.

Upon completion of the transaction, Escrow I and Escrow Capital will be merged into Cequel Communications Holdings I LLC and Cequel Capital Corp., respectively.

The company's B+ corporate credit rating and stable outlook remain unchanged, as does the BB- rating and 2 recovery on subsidiary Cequel Communications LLC's secured credit facilities and the B- issue-level rating and 6 recovery rating on Cequel's existing unsecured notes.

The ratings reflect the company's satisfactory business risk profile and highly leveraged financial risk profile, the agency said.

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