Moody's affirms Insight Midwest

Moody's Investors Service said it affirmed Insight Midwest Holdings, LLC's B1 corporate family rating and B2 probability of default rating, along with $260 million senior secured bank revolving credit facility due 2012 at B1 (LGD 3, 30%), $385 million senior secured bank term loan A due 2013 at B1 (LGD 3, 30%) and $1.8 billion senior secured term loan B due 2014 at B1 (LGD 3, 30%).

The outlook was changed to stable from positive, given the revised expectation that financial leverage may increase modestly and remain more elevated than previously expected following the recently completed exchange and tender for shares coupled with heightened risk of potential future shareholder-friendly transactions, Moody's said.

The ratings reflect the business and financial risks associated with the company's high financial leverage, comparatively low operating cash flow margins and expectations of an increasingly competitive operating environment, the agency said.

The rating also continues to be constrained by uncertainties related to the company's financial sponsor ownership structure and corresponding fiscal policies, which are deemed to be driven by a more shareholder versus creditor-friendly bias, Moody's said.

These risks are somewhat mitigated by the stability of the pay-TV distribution business, generally solid operating performance and the company's well-clustered cable systems, the agency said.

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