Moody's may lower Cablevision, unit

Moody's Investors Service said it placed all ratings for Cablevision Systems Corp. and CSC Holdings Inc., a wholly owned subsidiary of Cablevision, on review for downgrade following the Dolan family's announcement of a proposal to acquire Cablevision's cable assets.

Under the proposed transaction, credit metrics would deteriorate meaningfully as debt of the cable operations would increase to about 9 times EBITDA from just under 6 times range.

Ratings now under review for downgrade include Cablevision Systems Corp.'s Corporate Family Rating of Ba3, the $500 million new floating-rate notes due 2009 at B3 and the $1 billion new senior unsecured notes due 2012 at B3 as sell as CSC Holdings Inc.'s $4.2 billion aggregate senior unsecured notes at B1 and $250 million 10.5% senior subordinated debentures due 2016 at B2.

The proposed transaction includes the spinoff of the assets of Rainbow Media Holdings to all Cablevision shareholders on a pro rata basis.

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