Moody's rates Mediacom note B3

Moody's Investors Service said it assigned a B3 rating to Mediacom Broadband LLC's $300 million 8½% senior notes (LGD5, 88%) and affirmed Mediacom Communication Corp.'s B1 corporate family, B1 probability-of-default rating and SGL-2 speculative grade liquidity ratings. The revolving credit facilities and term loans of Mediacom LLC and Mediacom Broadband were affirmed at Ba3 (LGD3, 34%), and Mediacom's senior notes were affirmed at B3 (LGD5, 88%).

The outlook is stable.

Proceeds from the new notes will be used to repay outstanding amounts under Mediacom Broadband's $650 million senior secured revolver.

The agency said Mediacom Communication's corporate family rating reflects high financial risk - debt to EBITDA was 7.2x for the last 12 months ended June 30 - and the company's s slower rollout of new products and weaker operating performance relative to its peers.

However the ratings are supported by the high loan-to-value coverage inherent in Mediacom Communication's incumbent cable assets, its strong liquidity and management's commitment to improving the credit profile, Moody's said.

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