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TEXT-S&P rates Charter's subsidiaries notes 'BB-'
August 8, 2012 / 3:30 PM / 5 years ago

TEXT-S&P rates Charter's subsidiaries notes 'BB-'

Aug 8 - Standard & Poor's Ratings Services said today that it assigned its
'BB-' issue-level rating and '3' recovery rating to St. Louis-based cable-TV
operator Charter Communications Inc.'s proposed $1 billion senior notes
due 2022, 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 the recovery report on Charter, published March 29, 2012
on RatingsDirect.)

We expect Charter to use most of the net proceeds from these unsecured, 
publicly registered notes, along with some borrowings under its revolving 
credit facility, to redeem the 13.5% senior notes due 2016 issued by 
subsidiary CCH II LLC. There were $1.15 billion of 13.5% notes outstanding as 
of June 30, 2012. 

Our ratings and financial risk assessment on the company are not affected, 
since we do not expect a significant change in total indebtedness, although we 
expect interest expense to decline modestly. Ratings on Charter continue to 
reflect aggressive leverage, formidable satellite and telephone company 
competition, and material basic video subscriber erosion. Charter's business 
risk does benefit from favorable cable industry operating characteristics, 
including good revenue visibility inherent in its subscription-based business 
model and the significant bandwidth capacity of its fiber/coaxial plant. The 
company today increased its guidance for 2012 capital expenditures to the $1.5 
billion to $1.7 billion range, from the former range of $1.4 billion to $1.5 
billion range. We believe the increase supports the company's strategy to 
upgrade customers to digital set-top boxes and high-definition digital video 
recorders. (For the complete corporate credit rating rationale, see the full 
analysis on Charter, published March 27, 2012, on RatingsDirect.)

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RATINGS LIST

Charter Communications Inc.
 Corporate Credit Rating       BB-/Stable/--

New Ratings

CCO Holdings LLC
CCO Holdings Capital Corp.
 $1 bil senior notes due 2022  BB-
   Recovery Rating             3



Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.

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