Moody's rates San Juan Cable loans B1, B2

Moody's Investors Service said it assigned a B2 corporate family rating to San Juan Cable LLC and assigned B1 and B2 ratings to its proposed first and second lien bank facilities. Ratings assigned include corporate family rating at B2, proposed $50 million senior secured first-lien revolving credit facility due 2011 at B1, proposed $190 million senior secured first-lien term loan B due 2012 at B1 and proposed $160 million senior secured second-lien term loan due 2013 at B2. The outlook is stable.

The ratings reflect high financial risk, lack of scale and execution risk, offset by the potential for substantial cash flow growth, the realizable asset value and meaningful equity cushion.

The outlook reflects expectations that San Juan Cable will experience high single-digit to low-teens EBITDA growth over the next several years primarily through increased penetration of high-speed data and with some subscription growth, Moody's said.

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