Moody’s upgrades Mediacom

Moody's Investors Service said it upgraded the corporate family rating of Mediacom Communications Corp. to Ba3 from B1 and probability of default rating to Ba3-PD from B1-PD.

The agency also upgraded the bank facilities and notes ratings for wholly owned operating subsidiaries, Mediacom LLC and Mediacom Broadband LLC.

The outlooks for all three were changed to stable from positive.

Moody’s said the upgrade incorporates expectations for Mediacom's leverage to fall below 5 times debt-to-EBITDA during 2015, driven by continued repayment of debt with free cash flow and modest EBITDA growth. Mediacom lowered leverage to about 5.1 times (based on the trailing 12 months through Sept. 30 results and pro forma for the repayment of the Mediacom LLC term loan C at the end of 2014) from 5.5 times at the end of 2013 and roughly 6.7 times since its leveraging go-private transaction in 2011. Since that event, Mediacom has repaid about $450 million of debt.

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