Moody's affirms Mediacom

Moody's Investors Service said it affirmed the B1 corporate family and probability-of-default ratings for Mediacom Communications Corp. and the existing ratings at the company's wholly owned subsidiaries, Mediacom Broadband LLC and Mediacom LLC.

The agency said that the ratings affirmation followed Mediacom's announcement on Sept. 8 that the company has entered into a definitive agreement to repurchase all of Mediacom's class A common stock owned by an affiliate of Morris Communications Co., LLC.

As part of the transaction, Moody's said that Mediacom will exchange 100% of the shares of stock of a newly created subsidiary, which will hold cable systems serving about 25,000 subscribers and $110 million of cash, for 28.3 million shares of the company's class A stock held by the Morris affiliate equaling about 30% of the outstanding common stock.

The outlook remains stable.

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