S&P: MCNA loans B+, CCC+

Standard & Poor's said it assigned a B+ rating and 2 recovery rating to MCNA Cable Holdings LLC's proposed $345 million first-lien term loan and $25 million revolving credit facility at subsidiary, San Juan Cable LLC.

The agency also said it assigned a CCC+ rating and 6 recovery rating to the second-lien facilities at San Juan Cable Holdings.

Upon completion of the refinancing, the ratings on the company's currently existing credit facilities at San Juan Cable LLC will be withdrawn.

The agency also said it affirmed the B corporate credit rating on MCNA Cable.

The outlook is stable.

The proceeds will be used to refinance its current capital structure, including about $144 million of accredited value of debt and pay a $23.5 million distribution to private-equity holders, S&P said.

The ratings reflect high financial risk with a leverage of about 7x, the agency said.

The ratings also consider lagging market penetration due to continued competition, lack of geographic revenue diversity and uncertain demand for advanced services, S&P said.

Tempering factors include good revenue visibility from its subscription-based business model and growth potential from bundled advanced services provided over MCNA's upgraded cable plant, the agency said.

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