Fitch puts Mediacom on watch

Fitch Ratings said it placed the B+ issuer default rating for Mediacom Communications Corp. and its wholly owned subsidiaries Mediacom LLC and Mediacom Broadband LLC on Rating Watch negative.

The actions follow Mediacom's announcement that the company entered into a merger agreement with Rocco B. Commisso, Mediacom's founder and chief executive officer, and an entity created by Commisso, according to the agency.

Fitch said it expects Mediacom's leverage to be about 6.0x by year-end 2010, from 6.2x as of 12 months ending Sept. 30 and improve to 5.7x by the end of 2011.

Concerns center on the company's high leverage relative to its peer group and other larger cable multiple system operators, Mediacom's ability to maintain its competitive position and the limited fiber-to-the-node build by Qwest Communications International, Inc., the agency said.

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