S&P puts WideOpenWest on positive watch

Standard & Poor's said it placed the ratings on WideOpenWest Finance LLC, including its B- corporate credit rating, on CreditWatch with positive implications following news of its definitive agreement to acquire Knology Inc.

The acquisition is subject to approval by regulators and Knology shareholders and the company expects it to close in the second half of 2012.

The CreditWatch placement reflects the possibility that S&P may upgrade the ratings given the increased scale of the combined company and greater geographic diversity.

These factors could support an improved business risk profile assessment, which is currently viewed as weak, the agency said.

The weak business risk profiles also reflect maturing industry conditions and aggressive competition from better capitalized incumbent cable and telephone companies, S&P said.

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