S&P gives Charter facilities BBB-

S&P said it assigned a BBB- issue-level rating to Charter Communications Operating LLC's proposed $6.3 billion term loan B due 2025, $2.5 billion term loan A-2 due 2023 and $3.5 billion revolving credit facility due 2023.

The 1 recovery rating reflects an expectation for very high (90%-100%; rounded estimate: 95%) recovery in a default scenario.

Proceeds will be used to refinance the existing revolver, term loan A, term loan E, term loan F, term loan H and term loan I.

The agency said the BB+ corporate credit rating on Charter Communications Inc. remains, as the transaction is leverage neutral and leverage is expected to remain between 4.0x and 4.5x for the foreseeable future as the benefit of earnings growth from strength in broadband revenue is offset by debt-funded share repurchases.

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