Moody's affirms Mediacom

Moody's Investors Service said it affirmed its ratings for Mediacom Communications Corp. and its wholly owned subsidiaries, Mediacom LLC and Mediacom Broadband LLC, as outlined below.

The outlook remains stable.

Moody's said it affirmed the following ratings: Mediacom Communications's corporate family rating at B1, probability-of-default rating at B1 and speculative-grade liquidity rating at SGL-2; Mediacom LLC's $400 million senior secured revolving credit facility at Ba3 (LGD3 - 34%), $200 million senior secured term loan A at Ba3 (LGD3 - 34%), $650 million senior secured term loan C at Ba3 (LGD3 - 34%), $125 million 7 7/8% senior notes at B3 (LGD5 - 87%), $500 million 9½% senior notes at B3 (LGD5 - 87%); and Mediacom Broadband's $650 million senior secured revolving credit facility at Ba3 (LGD3 - 34%), $300 million senior secured term loan A at Ba3 (LGD3 - 34%), $800 million senior secured term loan D at Ba3 (LGD3 - 34%) and $500 million (combined) 8½% senior notes at B3 (LGD5 - 87%).

The agency noted that the ratings broadly reflect the company's high financial risk, including high leverage and only moderate coverage of interest and fixed charges, operating performance that continues to lag peers and expectations of heightened competition in future periods.

These risks are mitigated by the company's good liquidity profile with modest intermediate-term debt maturities and still large availability under committed lines of credit, offset by limited positive free cash flow, prospects for further growth and operating improvements and moderate loan-to-value, Moody's said.

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