Moody's rates CSC notes B1

Moody's Investors Service said it assigned a B1 rating to the proposed $500 million senior unsecured note issuance by CSC Holdings, Inc., a wholly owned subsidiary of Cablevision Systems Corp.

The outlook is stable.

Proceeds will be used to refinance $500 million of Cablevision debt maturing April.

The agency affirmed Cablevision's corporate family and probability-of-default ratings at Ba3, and senior unsecured notes at B2 (LGD6, 93% from LGD6, 92%).

CSC Holdings' senior secured bank credit facilities were affirmed at Ba1 (LGD2, 18% from 17%) and senior unsecured notes and debentures were affirmed at B1 (LGD4, 69% from LGD4, 67%).

Rainbow National Services LLC's corporate family and probability-of-default ratings at Ba3, senior secured bank credit facilities were affirmed at Ba2 (LGD2, 28%), senior unsecured notes at B1 (LGD5, 75% from 74%) and senior subordinated notes at B2 (LGD6, 91%).

Newsday LLC's senior secured fixed-rate term loan was affirmed at B1 (LGD4, 69% from 67%).

Cablevision's ratings reflect the company's high financial risk and growing business risk, both of which are exacerbated by the historically shareholder-oriented predisposition and investment strategies of the controlling Dolan family, the agency said.

These risks are mitigated by the industry-leading operating performance of the core cable business and prospects for further growth in what are perceived to be very high value assets, inclusive of the content and other media properties, the agency noted.

Rainbow's ratings reflect the risks associated with its moderately high financial leverage, shareholder-oriented fiscal strategies, and concentrated asset and customer bases, the cash flows from which remain exposed to greater media fragmentation in future periods, the agency said.

These risks are offset by the high underlying value of Rainbow's primary assets and their free cash flow generating, along with ongoing maintenance of a good liquidity profile, Moody's said.

Newsday's rating reflects the equivalent senior unsecured risk of CSC by virtue of the CSC guaranty of Newsday's term loan, the agency said.

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