Moody's introduces new ratings

Moody's Investors Service has introduced two new ratings: probability-of-default ratings and loss-given-default ratings.

The agency's current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The loss-given-default rating methodology will disaggregate these two key assessments in long-term ratings.

The agency said this methodology will enhance the consistency in its notching practices across industries and will improve the transparency and accuracy of its ratings, as Moody's research shows that credit losses on bank loans have tended to be lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations.

Loss-given-default assessments (or LGDs) are assigned to individual rated debt issues - loans, bonds and preferred stock - and also express Moody's opinion of expected loss as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0%-9%) to LGD6 (loss anticipated to be 90%-100%).

Below is a list of the rating actions for Moody's rated companies, sorted by industry. The rating immediately after the company name denotes the corporate family rating and the percentages next to the LGDs represent the expected loss-given-default rates.

Media

Atlantic Broadband Finance, LLC, B2; probability-of-default rating, B2; loans, B1, LGD3, 36%; notes, Caa1, LGD5, 89%.

Bresnan Communications LLC, B2; probability-of-default rating, B2; first-lien loans, B1, LGD3, 41%; second-lien loans, downgraded to Caa2 from B3, LGD6, 92%.

Cablevision Systems Corp., B1; probability-of-default rating, B1; notes, B3, LGD6, 93%. CSC Holdings, Inc., notes, B2, LGD5, 73%; loans, downgraded to Ba2 from Ba3, LGD2, 21%.

Cequel Communications, LLC, B2; probability-of-default rating, B2; first-lien loans, B1, LGD3, 38%; second-lien loan, Caa1, LGD5, 90%.

Charter Communications, Inc., Caa1; probability-of-default rating, Caa1; convertible notes, upgraded to Caa3 from Ca, LGD6, 96%. Charter Communications Holdings, LLC, notes, upgraded to Caa3 from Ca, LGD6, 95%. CCH I Holdings, LLC, notes, upgraded to Caa3 from Ca, LGD5, 90%. CCH I, LLC and CCH II, LLC, notes, upgraded to Caa2 from Caa1, LGD5, 70%. CCO Holdings, LLC, notes, downgraded to Caa1 from B3, LGD3, 48%. Charter Communications Operating, LLC, loans, upgraded to B1 from B2, LGD2, 13%; notes, downgraded to B3 from B2, LGD3, 37%.

EchoStar Communications Corp., Ba3; probability-of-default rating, Ba2; convertible notes, upgraded to B1 from B2, LGD6, 96%. EchoStar DBS Corp., notes, Ba3, LGD4, 57%.

Grande Communications Holdings, Inc., Caa1; probability-of-default rating, B3; notes, Caa1, LGD4, 63%.

HIT Entertainment, Inc., B1; probability-of-default rating, B1; first-lien loans upgraded to Ba3 from B1, LGD3, 34%; second-lien loan, downgraded to B3 from B2, LGD5, 86%.

Knology Inc., B2; probability-of-default rating, B2; first-lien loans, upgraded to Ba3 from B1, LGD3, 30%; second-lien loan, Caa1, LGD5, 82%.

LodgeNet Entertainment Corp., B1; probability-of-default rating, B1; loans, upgraded to Ba1 from Ba3, LGD2, 17%; notes, upgraded to B2 from B3, 73%.

Mediacom Communications Corp., B1; probability-of-default rating, B1. Mediacom LLC, loans, Ba3, LGD3, 38%; notes, B3, LGD6, 90%. Mediacom Broadband, loans, Ba3, LGD3, 38%; notes, downgraded to B3 from B2, LGD6, 90%.

Patriot Media & Communications CNJ, LLC, B1; probability-of-default rating, B1; first-lien loans, upgraded to Ba3 from B1, LGD3, 40%; second-lien loan, B3, LGD6, 91%.

Rainbow National Services LLC, B1; probability-of-default rating, B1; loans, upgraded to Ba1 from Ba3, 19%; senior notes B2, LGD4, 59%; subordinated notes, B3, LGD5, 86%.

RCN Corp., B1; probability-of-default rating, B1; loans, upgraded to Ba2 from Ba3, LGD2, 21%.

San Juan Cable LLC, B2; probability-of-default rating, B2; first-lien loans, B1, LGD3, 32%; second-lien loan, downgraded to Caa1 from B3, LGD5, 86%.

WMG Holdings Corp., Ba3; probability-of-default rating, Ba3; notes, upgraded to B2 from B3, LGD6, 95%. WMG Acquisitions Corp., loans, Ba2, LGD3, 31%; notes, B2, LGD5, 84%.

WideOpenWest Finance, LLC, B2; probability-of-default rating, B2; first-lien loans, upgraded to B1 from B2, LGD3, 39%; second-lien loan, downgraded to Caa1 from B3, LGD5, 90%.

Alliance Atlantis Communications Inc., Ba2; probability-of-default rating, Ba3; loans, upgraded to Ba1 from Ba2, LGD2.

Liberty Media Corp., Ba2; probability-of-default rating, Ba2; notes, Ba2, LGD4, 52%; exchangeable notes, Ba2, LGD4, 52%.

DirecTV Holdings LLC, Ba2; probability-of-default rating, Ba2; loans, upgraded to Baa3 from Ba1, LGD2, 18%; notes, downgraded to Ba3 from Ba2, LGD5, 72%.

Shaw Communications Inc., Ba2; probability-of-default rating, Ba2; notes, Ba2, LGD 4, 51%; preferred stock, downgraded to B1 from Ba3, LGD 6, 95%.

Quebecor Media Inc., Ba3; probability-of-default rating, Ba3; loans, B1, LGD 5, 79%; notes, B2, LGD 6, 92%. Sun Media Corp. loans, upgraded to Baa3 from Ba2, LGD 1, 7%; notes, upgraded to Ba2 from Ba3, LGD 3, 37%. Videotron Ltee. notes, upgraded to Ba2 from Ba3, LGD 3, 37%.

Deluxe Entertainment Services Group, Inc., B2; probability-of-default rating, B2; first-lien loans, B1, LGD 3, 41%; second-lien loan, downgraded to Caa1 from B3, LGD 5, 89%.

Sirius Satellite Radio, Inc., Caa1; probability-of-default rating, B3; notes, Caa1, LGD 4, 65%.

XM Satellite Radio Holdings, Inc., Caa1; probability-of-default rating, Caa1; convertible notes, Caa3, LGD 5, 89%. XM Satellite Radio, Inc., revolver, upgraded to B1 from B3, LGD1, 5%; notes, upgraded to Caa1 from Caa2, LGD 3, 49%.

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