S&P affirms WideOpenWest loan

Standard & Poor's said it affirmed the B- rating on WideOpenWest Finance LLC's proposed $250 million add-on to its first-lien term loan ($975 million outstanding) with 4 recovery rating.

The B- corporate credit rating was affirmed.

The outlook is positive.

Proceeds will be used to repay $50 million of borrowings under the revolver and add about $195 million of cash to the balance sheet.

"The ratings on WOW continue to reflect a high degree of business risk due to the company's vulnerable market position as a cable overbuilder and significant competition from financially stronger incumbent cable operators and AT&T Inc. (A/negative/A-1)," S&P analyst Allyn Arden said in a statement.

Ratings also reflect the company's elevated leverage and cost disadvantages, the agency noted

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