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TEXT-S&P rates Cablevision Systems $500 mln senior notes 'B+'
September 13, 2012 / 4:40 PM / 5 years ago

TEXT-S&P rates Cablevision Systems $500 mln senior notes 'B+'

Sept. 13 - Standard & Poor’s Ratings Services said today that it assigned its ‘B+’ rating to Bethpage, N.Y.-based cable-TV operator Cablevision Systems Corp.’s $500 million senior notes due 2022. The recovery rating is ‘6’, indicating our expectation for negligible (0% to 10%) recovery of principal in the event of a payment default. Other ratings on Cablevision and subsidiaries, including its ‘BB’ corporate credit rating, are not affected by the debt issuance. The outlook remains stable. The company intends to use the proceeds to repurchase up to an aggregate $400 million of two senior note issues of subsidiary CSC Holdings LLC with the balance to repay a portion of secured bank debt. Cablevision reported about $11 billion of debt on June 30, 2012. Ratings on Cablevision reflect our current view of a “strong” business risk profile. We revised this profile from “satisfactory,” recognizing the good revenue visibility characteristics of Cablevision’s largely subscription-based cable-TV business and only limited video subscriber losses despite the presence of Verizon’s FiOS service in much of the Cablevision’s metro-NY service area. We view the financial risk profile of this family-controlled company as “aggressive.” Debt leverage is in the 5x area, with limited potential for improving that metric over the next year given accelerated capital spending and recent restraint on rate increases. (For the complete corporate credit rating rationale, see the summary analysis on Cablevision, published June 28, 2012, on RatingsDirect.) RELATED CRITERIA AND RESEARCH

-- U.S. Telecom And Cable Companies’ Maturities Are Manageable, But Lower-Rated Issuers Face Some Liquidity Challenges, July 23, 2012

-- U.S. Telecom And Cable Companies, Strongest To Weakest, July 13, 2012

-- U.S. Telecom And Cable Ratings Should Be Stable Overall During Weak Economic Recovery, July 13, 2012

-- A Matter of Policy: U.S. Telecom Companies Maintain High Dividend Payouts, But For How Long?, May 30, 2012

-- A Matter of Policy: U.S. Cable And Satellite-TV Companies Ratchet Up Shareholder Payouts, May 16, 2012

-- Top 10 Investor Questions: U.S. Telecom and Cable Industries, May 10, 2012

-- Assessing The Four-Notch Rating Gap Between The Two U.S. Direct-To-Home Satellite Video Operators, May 9, 2012

-- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011 RATINGS LIST Cablevision Systems Corp. Corporate Credit Rating BB/Stable/-- New Ratings Cablevision Systems Corp. Senior Unsecured $500 mil sr notes due 2022 B+

Recovery Rating 6 Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at All ratings affected by this rating action can be found on Standard & Poor’s public Web site at Use the Ratings search box located in the left column. Primary Credit Analyst: Richard C Siderman, San Francisco (1) 415-371-5034; Secondary Contact: Michael P Altberg, New York (1) 212-438-3950;

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