Moody's upgrades Comcast, sees improving metrics

NEW YORK, April 24 (Reuters) - Moody's Investors Service on Friday upgraded Comcast Corp's (CMCSA.O) long-term senior unsecured debt ratings and said balance sheet measures should improve the cable company's credit metrics in 2009.

The agency raised the rating by one notch to 'Baa1', or its eighth-highest investment grade. The action impacts about $32 billion of debt, Moody's said.

The company's credit metrics, and especially its 2008 debt-to-EBITDA leverage of 2.7 times "will continue to improve in 2009 given the company's ability to strengthen its balance sheet through absolute debt reduction and operational improvements, and management's commitment to sustaining a strong balance sheet which we believe will cause debt-to-EBITDA leverage to be sustained under 2.5 times," said the note.

Comcast is well placed to increase profitability and cash flow, thanks to steady subscription revenue streams, even if revenue growth is likely to slow.

" This affords Comcast much financial flexibility and discretion to manage its own financial condition and sustain the 'Baa1' rating," the ratings agency said.

Moody's is expecting revenue and cash flow to grow in the low- to mid-single digits in the medium term, as its high-speed data and voice products continue to gain market share.