TEXT - S&P rates Charter Communications senior notes 'BB-'

Wed Dec 12, 2012 12:41pm EST

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Dec 12 - Standard & Poor's Ratings Services today assigned its 'BB-'
issue-level rating and '3' recovery rating to St. Louis-based cable TV operator
Charter Communications Inc.'s (Charter) proposed $750 million senior
notes due 2023, to be issued by its subsidiaries CCO Holdings LLC and CCO
Holdings Capital Corp. The '3' recovery rating indicates our expectation for
meaningful (50% to 70%) recovery in the event of payment default. (For the
complete recovery analysis, see Standard & Poor's recovery report on Charter, to
be published as soon as possible following this report on RatingsDirect.)

"We expect Charter to use the bulk of the net proceeds from these unsecured, 
publicly registered notes for debt repayment, including amounts under its 
credit facilities," said Standard & Poor's credit analyst Rich Siderman.

Standard & Poor's ratings on Charter and related entities, including the 'BB-' 
corporate credit rating, are not affected by the new issuance. Charter 
reported approximately $13.7 billion of debt at Sept. 30, 2012.
 
The ratings on Charter reflect aggressive leverage, formidable satellite and 
telephone company competition, and material basic video subscriber erosion. We 
view Charter's business risk profile as satisfactory and benefitting from 
favorable cable industry operating characteristics, including the good revenue 
visibility of its subscription-based business model and the significant 
bandwidth capacity of its fiber/coaxial plant.

RATINGS LIST

Rating Affirmed

Charter Communications Inc.
 Corporate credit rating                 BB-/Stable/--

New Rating

CCO Holdings LLC
CCO Holdings Capital Corp.

$750 mil. senior notes
 Senior unsecured                        BB-
  Recovery rating                        3
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