S&P: Time Warner unaffected

Standard & Poor's said Time Warner Cable Inc.'s and Comcast Corp.'s (BBB/Watch Positive/A-2) plan to acquire substantially all the assets of Adelphia Communications Corp. and Time Warner Inc.'s (BBB+/stable/A-2) and Time Warner Cable's plan to swap cable subscribers and cash to redeem Comcast's investment in Time Warner Cable do not affect the BBB+ corporate credit rating or stable outlook on Time Warner Inc. or debt ratings on it or any of its subsidiaries.

S&P said Time Warner Cable will gain about 3.5 million basic video subscribers, increasing its total managed subscribers to about 14.4 million from roughly 10.9 million, and will gain programming cost, equipment cost and overhead economies.

The affect on the consolidated Time Warner credit profile is to consume most of the existing cash balances, increase debt at Time Warner Cable and create a publicly traded equity at Time Warner Cable, according to S&P.

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