Fitch affirms Cablevision

Fitch Ratings said it affirmed the B+ issuer default ratings assigned to Cablevision Systems Corp. and its wholly owned subsidiary CSC Holdings, Inc. following the rejection by the companies of an offer from Cablevision's controlling shareholders to acquire the outstanding shares of Cablevision for $30 per share in an all-cash transaction. Cablevision's CCC+/RR6 senior unsecured debt ratings and CSC's BB-/RR3 senior unsecured debt ratings were also affirmed.

The ratings were removed from Rating Watch negative, and the outlook is negative.

The agency originally placed the ratings on Rating Watch negative on Oct. 9 following an announcement that Cablevision's controlling shareholder, the Dolan family, offered to buy out Cablevision's public shareholders for $27 per share in an all-cash transaction. The original offer was subsequently increased on Jan. 12 to $30 per share. Since the $30 per share offer was characterized by the Dolans' as their best and final offer, Fitch said it does not expect further negotiation between the parties regarding the purchase offer.

The ratings and negative outlook reflect Fitch's ongoing concern related to the company's financial policy and the potential for the company to continue to place greater priority on returning capital to shareholders at the expense of bondholders. Additionally, the outlook considers the possibility that company management will use distributions from the restricted group to fund other investments.

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