S&P: WideOpenWest notes CCC+

Standard & Poor's said it assigned its CCC+ issue-level rating and 6 recovery rating to the $320 million of senior subordinated notes due 2019 to be co-issued by WideOpenWest Finance LLC and WideOpenWest Capital Corp.

The 6 recovery rating indicates an expectation for negligible recovery in the event of a payment default.

At the same time, the agency said it affirmed the CCC+ issue-level rating on the existing senior unsecured notes due 2019, which are being reduced in size to $700 million from $1.02 billion. The 6 recovery rating on this debt is unchanged.

The B corporate credit rating and stable outlook also remain unchanged and reflect a highly leveraged financial risk profile, including what S&P considers an aggressive shareholder-oriented financial policy, the agency said.

Pro forma debt to EBITDA is elevated, at around 6.8x, and S&P said its rating assumes that leverage will remain at 7.0x or lower over the next two years.

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