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.
Charter Communications Inc.
Corporate credit rating BB-/Stable/--
CCO Holdings LLC
CCO Holdings Capital Corp.
$750 mil. senior notes
Senior unsecured BB-
Recovery rating 3