info

Yes No
Moodys.com
Terms of Use
REGULATORY AFFAIRS
CAREERS
ABOUT US
CONTACT US
HOME
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Can't read?
Try a new set
Send Cancel
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
OK
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
OK
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's Rates Charter Communications' CCO Holdings' Bonds B2, Upgrades CCO 2nd Lien Debt to Ba3

04 Jan 2011

Outlook Revised to Positive and Other Ratings Affirmed

New York, January 04, 2011 -- Moody's Investors Service assigned a B2 (LGD5-81%) rating to the proposed $750 million issuance of new senior unsecured notes due 2019 by CCO Holdings, LLC ("CCO Holdings"), an indirect intermediate holding company of Charter Communications, Inc. ("Charter" or the company) and Ba3-rated CCH II, LLC (the legal entity where the fundamental benchmark Corporate Family Rating, or CFR, is housed). Moody's also raised its ratings for the senior secured second lien notes of subsidiary Charter Communications Operating, LLC ("CCO") to Ba3 (LGD4-54%) from B1 (LGD4-60%). All other ratings were affirmed, including the Ba3 CFR and Ba3 Probability of Default Rating (PDR). LGD point estimates have been revised to reflect the proforma capital structure assuming successful completion of the pending transactions, as expected. The rating outlook was also revised to positive from stable.

The following summary lists Moody's current ratings and today's actions for Charter's rated subsidiaries:

..Issuer: CCH II, LLC (CCH II)

....Corporate Family Rating, affirmed Ba3

....Probability of Default Rating, affirmed Ba3

....Speculative Grade Liquidity Rating, SGL-1

....$1,766 Million of 13.5% Sr Unsec Nts due 2016, affirmed B2 (LGD6-93%)

..Issuer: CCO Holdings, LLC (CCO Holdings)

....$750 Million of NEW Sr Unsec Nts due 2019, assigned B2 (LGD5-81%)

....$1,000 Million of 7.25% Sr Unsec Nts due 2017, affirmed B2 (to LGD5-81% from LGD5-82%)

....$900 Million of 7.875% Sr Unsec Nts due 2018, affirmed B2 (to LGD5-81% from LGD5-82%)

....$700 Million of 8.125% Sr Unsec Nts due 2020, affirmed B2 (to LGD5-81% from LGD5-82%)

....$350 Million Sr Sec 1st Lien (but CCO stock only; hence, effectively 3rd Lien) Credit Facility due 2014, affirmed B1 (to LGD4-65% from LGD5-71%)

..Issuer: Charter Communications Operating, LLC (CCO)

....$1,100 Million of 8% Sr Sec 2nd Lien (CCO assets) Nts due 2012, upgraded to Ba3 (LGD4-54%) from B1 (LGD4-60%)

....$546 Million of 10.875% Sr Sec 2nd Lien (CCO assets) Nts due 2014, upgraded to Ba3 (LGD4-54%) from B1 (LGD4-60%)

....$1,300 Million (approximately $387 Million proforma drawn for all pending transactions) Sr Sec 1st Lien (CCO assets) Revolving Credit Facility due 2015*, affirmed Ba1 (to LGD2-20% from LGD2-23%)

....$199 Million Sr Sec 1st Lien (CCO assets) Non-Revolving Credit Facility due 2013, affirmed Ba1 (to LGD2-20% from LGD2-23%)

....$3,001 Million Sr Sec 1st Lien (CCO assets) Term Loan C due 2016, affirmed Ba1 (to LGD2-20% from LGD2-23%)

....$3,337 Million (approximately $1,554 Million proforma outstanding for all pending transactions) Sr Sec 1st Lien (CCO assets) Term Loan B-1 due 2014, affirmed Ba1 (to LGD2-20% from LGD2-23%)

....$500 Million (approximately $408 Million proforma outstanding for all pending transactions) Sr Sec 1st Lien (CCO assets) Term Loan B-2 due 2014, affirmed Ba1 (to LGD2-20% from LGD2-23%)

* due Dec. 2013 if CCO still has more than $1 billion of debt maturing between Jan. and Apr. 2014

RATINGS RATIONALE

Proceeds from the proposed new senior unsecured bond offering will be used to repay an approximately equivalent amount of the senior secured first lien CCO B Term Loans, plus associated transaction fees. "While the impact of the pending transaction is largely neutral on a stand-alone basis, the cumulative effect of recent refinancing activities has solidified the financial health of the company and thereby enhanced the prospect of further operational, financial and rating improvements in future periods," noted Russell Solomon, Moody's Senior Vice President and lead analyst for the company. "We continue to see prudent fiscal management via extension and smoothing of debt maturities at economically attractive rates, with the concerted re-balancing of capital between the main operating and holding companies since the company emerged from bankruptcy in November 2009 as the primary impetus for instrument-specific rating upgrades to date."

The B2 rating for the new CCO Holdings senior unsecured notes reflect their structural and effective subordination to the reduced but still sizeable amount of secured debt claims residing at CCO. While Moody's Loss Given Default (LGD) Methodology affords the prospect that B1 ratings may have been appropriate for this debt class based on the aforementioned shift in capital mix, the rating agency affirmed the existing pari-passu instrument ratings and assigned equivalent B2 ratings to this new debt as the implied expected loss rates fall at the cusp of B1 and B2. Moreover, the B2 rating was deemed to more appropriately reflect the relative perceived risk of these claims in the context of all others in the company's consolidated waterfall of liabilities. Because of this effective override, however, ratings for the senior unsecured debt of CCO Holdings could be raised if the transaction is meaningfully upsized and/or in conjunction with future follow-on offerings of a similar nature wherein holding company debt is issued to permanently repay senior-ranking operating company debt.

The rating upgrades of the CCO second lien debt ($1.65 billion in aggregate), to Ba3 from B1, follow recent upgrades of the CCO first lien debt (to Ba1 from Ba2) in September 2010 and reflect ongoing application of Moody's Loss Given Default (LGD) Methodology. Specifically, the upgrades incorporate the anticipated like-amount pay-down of CCO term debt in short order with the net proceeds from the new CCO Holdings bond offering. The net effect of these changes in capital mix for the consolidated company is now a smaller amount of effectively senior secured debt of CCO (i.e.; the first lien debt, proforma for its pay-down, causing estimated loss rates for the same to decline to 20% from 23%, albeit still hold at LGD2 overall) and a larger amount of junior-ranking senior unsecured debt at intermediate holding company CCO Holdings. This, in turn, affords modestly higher recovery prospects and more debt cushion for senior secured second and third lien creditors, as reflected in higher instrument ratings fro second lien debt holders and improved LGD point estimates for both second and third lien debt holders (to 54% and 65% for the second and third lien notes, respectively, from 60% and 71% previously).

The positive outlook reflects the company's steadily improving financial profile (of which the debt maturity profile remains an important component) and expectations that enhanced financial flexibility will afford the company greater opportunity to make incremental infrastructure and other investments that will ultimately generate better returns and facilitate further balance sheet strengthening over time. Moreover, such improvements should be of a sufficient magnitude to warrant consideration of prospective positive change(s) in the company's fundamental benchmark ratings (i.e.; CFR, PDR) over the next 12-to-18 months.

The Ba3 CFR continues to broadly reflect the company's moderately high financial risk, as evidenced by debt-to-EBITDA leverage of approximately 5.2x, albeit declining, and a highly competitive operating environment for increasingly mature core product offerings. The rating is supported, however, by the company's large size, expectations of continued operational improvements and ancillary growth opportunities, and meaningful perceived underlying asset value associated with its sizeable (albeit still shrinking) 5+ million customer base.

The SGL-1 rating reflects our expectation that Charter will maintain a robust liquidity profile over the next twelve months. With healthy projected annual free cash flow of $500 million or more (with some variability afforded for additional capital investments), significant availability under existing revolving lines of credit and very modest near-term debt amortization requirements, the company's liquidity position continues to be best characterized as "very good."

The last rating action was on September 20, 2010 when Moody's assigned a B2 rating to CCO Holdings' then-proposed senior unsecured bond offering ($750 million initially, and subsequently increased to $1 billion), raised CCO's senior secured first lien bank debt ratings to Ba1 from Ba2, and affirmed Charter's Ba3 CFR and Ba3 PDR, among other ratings. Additional information can be found on www.moodys.com, including a December 22, 2010 Analysis entitled "Charter Communications, Inc. -- From Bankruptcy to Investment Grade?"

The principal methodologies used in this rating were Moody's Global Cable Television Industry Methodology published in July 2009 and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009.

Charter Communications, Inc. is one of the largest domestic cable multiple system operators serving approximately 4.7 million basic subscribers (5.2 million customers in total, incorporating both video and non-video, residential and commercial customers) and generating annual revenues approximating $7 billion. The company maintains its headquarters in St. Louis, Missouri.

REGULATORY DISCLOSURES

Information sources used to prepare the credit rating are the following: parties involved in the ratings, parties not involved in the ratings, public information, and confidential and proprietary Moody's Investors Service information.

Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of maintaining a credit rating.

Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

New York
Russell Solomon
Senior Vice President
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Alexandra S. Parker
MD - Corporate Finance
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's Investors Service
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's Rates Charter Communications' CCO Holdings' Bonds B2, Upgrades CCO 2nd Lien Debt to Ba3
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​
Moodys.com