S&P ups Midcontinent debt to BB+

S&P said it affirmed its BB- corporate credit rating on Midcontinent Communications.

The outlook is stable.

The agency also affirmed its B rating on the company's $425 million senior unsecured debt notes due 2023 (which includes the $125 million add-on). The recovery rating remains 6, which indicates an expectation for negligible (0%-10%) recovery in the event of payment default.

Midcontinent will use proceeds from the add-on to partially fund the acquisition of cable properties in Kansas from WideOpenWest.

At the same time, S&P raised its rating on the company's senior secured debt to BB+ from BB and revised the recovery rating to 1 from 2. The 1 recovery rating indicates an expectation for very high (90%-100%) recovery in the event of payment default.

"The rating affirmation reflects our view that despite the increase in adjusted debt to EBITDA to about 5.0x from 4.4x, leverage is still within our parameters for the BB- corporate credit rating," S&P credit analyst Allyn Arden said in a news release.

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