Moody's rates Cablevision notes B1

Moody's Investors Service said it assigned a B1 (LGD6, 91%) rating to Cablevision Systems Corp.'s proposed $1 billion issuance of senior unsecured notes. The offering will be split into two tranches maturing in 2018 and 2020. The agency also said it upgraded its speculative grade liquidity rating to SGL-1 from SGL-2 and affirmed its $1 billion of senior unsecured bonds due 2012 B1 (LGD6, 91%) and $900 million of senior unsecured bonds due 2017 at B1 (LGD6, 91%).

Its outlook on the company and subsidiary Rainbow National Services LLC was revised to positive from stable.

The agency also affirmed CSC Holdings, LLC's $180 million of senior secured revolving credit facility due 2012, $1.23 billion of senior secured revolving credit facility due 2015, $127 million senior secured term loan A-1 due 2012, $460 million of senior secured term loan A-2 due 2015, $505 million senior secured term loan B-1 due 2013, $1.2 billion of senior secured term loan B-2 due 2016 and $1.7 billion of senior secured term loan B-3 due 2016 at Baa3 (LGD2, 17%) and its $1 billion of 7 5/8% senior unsecured notes due 2011, $500 million of 6 ¾% senior unsecured notes due 2012, $844 million of 8 ½% senior unsecured notes due 2014, $500 million of 8 ½% senior unsecured notes due 2015, $300 million of 7 7/8% senior unsecured notes due 2018, $500 million of 7 5/8% senior unsecured notes due 2018 and $526 million of 8.625% senior unsecured notes due 2019 at Ba3 (LGD4, 65%).

The agency also affirmed Newsday LLC's (its debt is guaranteed by CSC Holdings) $650 million of senior secured term loans due 2013 at Ba3 (LGD4, 65%) and Rainbow National Services' $580 million of senior secured revolving credit facilities due 2012 and $450 million of senior secured term loan A due 2013 at Ba1 (LGD2, 27%), $300 million of 8 ¾% senior unsecured notes due 2012 at Ba3 (LGD5, 73%) and $325 million of 10 3/8% senior subordinated notes due 2014 at B1 (LGD6, 91%).

The shift to a positive outlook for the ratings of Cablevision and Rainbow National reflect an expectation of continued strong operating performance for the pay TV distribution and cable network programming businesses, Moody's said.

The agency said it expects the group to sustain growing free cash flow generation and a continue the recently demonstrated penchant for more conservative fiscal policies and balance sheet management.

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