Moody's lifts Knology ratings

Moody's Investors Service said it upgraded the corporate family rating for Knology, Inc. to B2 from B3, raised the senior secured first-lien bank rating to B1 from B3 and the senior secured second-lien bank rating to Caa1 from Caa2.

The outlook is now positive.

Moody's said the upgrades reflect Knology's more rapid-than-expected transition to positive free cash flow from operations; it anticipates Knology will achieve positive free cash flow from operations after capital expenditures for the full-year 2006.

Knology's B2 corporate family rating also reflects its lack of scale, financial risk and concerns over competition, offset by the company's upgraded network, high penetration of multiple services and reasonable diversification of cash flow among its markets relative to other companies of similar size, Moody's said.

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