S&P cuts Cablevision, placed on developing watch

Standard & Poor's said it lowered its long-term ratings on Cablevision Systems Corp. and related entities, including the corporate credit rating to BB- from BB, senior unsecured debt rating to B from B+, CSC Holdings Inc.'s subordinated debt rating to B from B+ and Rainbow National Services LLC's secured bank loan to BB from BB+ and senior unsecured debt and subordinated debt ratings to B from B+.

All long-term ratings were placed on CreditWatch with developing implications.

The downgrades follow the filing of Cablevision's 8-K report with the Securities and Exchange Commission, which said there were technical covenant violations under CSC Holdings Inc.'s existing bank credit agreement and possible technical covenant violations under other debt instruments.

It also indicated that Cablevision is completing a comprehensive covenant compliance review, seeking waivers under its bank credit agreement and, if necessary, seeking waivers under its other debt instruments, the agency said.

In addition, the company has yet to address the $1.5 billion June 2006 maturity on the CSC Holdings' credit facility.

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