Moody's: WideOpenWest unaffected

Moody's said the plan of WideOpenWest, Inc., parent of WideOpenWest Finance, LLC (WOW), to issue equity through an initial public offering is a credit positive but that it does not impact WOW's B2 corporate family rating or stable outlook.

In a March 23 Securities and Exchange Commission filing WideOpenWest announced it would seek to raise equity in an initial public offering to reduce debt at WOW and for general corporate purposes.

“Moody's believes the transaction will be credit positive for WOW as it will reduce some of the company's $2.9 billion of outstanding debt and improve debt leverage. A potentially large equity raise that resulted in substantial debt reduction could result in upward pressure on WOW's ratings if it resulted in sustained leverage around 5 times debt-to-EBITDA (Moody's adjusted),” Moody’s said in a news release.

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