Moody's affirms WideOpenWest

Moody's Investors Service said it affirmed all ratings for WideOpenWest Finance LLC following its announcement of a $100 million debt financed dividend to shareholders.

Moody's rates the company's $30 million senior secured revolver due 2010 at B2; $80 million senior secured term loan A due 2010 at B2; $270 million (upsized from $170 million) senior secured term loan B due 2011 at B2; senior implied rating at B2; and senior unsecured issuer rating at Caa1.

The outlook is stable.

The affirmation considers the company's improving operating and credit metrics prior to the dividend offset by this somewhat anticipated increase in debt, the agency said. Proceeds will come from the increase in the term loan B following an amendment to its senior secured bank credit facilities.

Absent the pro forma increase in leverage, Moody's said it would have likely considered revising the ratings upward based on declining leverage and continued strong operating trends; the current ratings can thus sustain the incremental debt.

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