S&P rates Knology loans B, CCC+

Standard & Poor's said it assigned a B long-term corporate credit rating Knology Inc., a B rating with a recovery rating of 3 to the company's $173 million senior secured first-lien term loan and $25 million revolver and CCC+ rating with a recovery rating of 5 to its $97 million senior secured second-lien term loan. The outlook is stable.

The agency said ratings reflect the company's vulnerable market position, uncertain long-term sustainability as a cable overbuilder providing undifferentiated services in a fiercely competitive landscape, its small scale, an unfavorable cost position relative to the incumbent cable operators, high leverage and limited long-term liquidity if the company loses subscribers to competitors.

Tempering factors include Knology's reputation for excellent customer service, a fully upgraded plant with two-way capability and the continued expectation of significant revenue and EBITDA growth, S&P said.

adequate liquidity consisting of $13.6 million in cash

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