S&P rates Charter loans BB+

Standard & Poor's said it assigned a BB+ issue-level rating and 1 recovery rating to Charter Communications Operating LLC's amended $3 billion senior secured term loan C due 2016 and new $1.2 billion senior secured revolving credit facility due 2015 (a portion is due in 2013).

The new facilities do not affect the other ratings of parent Charter Communications Inc. and related entities, including the BB- corporate credit rating and stable outlook.

The new facilities extend the maturity on a portion of the existing term loan and also restore a functioning revolving credit facility. The agency explained that the company's pre-petition revolver was reinstated at emergence from bankruptcy but without the capacity to revolve.

Under the amendment, the agent bank and lenders agreed to dismiss the pending appeal of the company's Order of Confirmation.

S&P said that it views these amendments as overall favorable developments, but its view of the company credit profile since its Nov. 30 emergence from Chapter 11 bankruptcy remains unchanged. The ratings continue to reflect high leverage, low basic video penetration and limited but growing competition from AT&T Inc.'s U-verse video service.

Mitigating factors include a fair business position, good revenue visibility, capital spending largely linked to growth of new revenue-generating units, the significant bandwidth capacity of Charter's fiber/coaxial plant and adequate near-term liquidity, the agency said.

The debt-to-EBITDA ratio is about 5.4 times.

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