Moody's: Cequel outlook positive

Moody's Investors Service said it revised Cequel Communications, LLC's outlook to positive from stable and affirmed its corporate family and probability-of-default ratings at B2, first-lien credit facilities at B1 (LGD3, 37% from 38%) and second-lien credit facilities at Caa1 (LGD5, 89%).

According to the agency, the positive outlook reflects expectation that revenue and margins will continue to increase over the rating horizon as penetration of high speed data and telephony services grow further, resulting in ongoing reduction of financial leverage to more conservative levels over the next 12 to 18 months.

Moody's said it believes Cequel's just-closed amendment also provides for opportunistic deleveraging via approved debt repurchases that are likely to occur on a discounted basis, but remains cautious given uncertainty surrounding the amount and price of debt that may be retired.

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