S&P affirms Cablevision

Standard & Poor's said it affirmed the ratings of Cablevision Systems Corp. and its related entities, including its BB corporate credit rating and removed all the ratings from CreditWatch following the company's filing of its delayed second-quarter 2006 10-Q.

The ratings had been placed on CreditWatch with negative implications on Aug. 8, following the company's disclosure that it reviewed its past practices related to the granting of stock options and stock appreciation rights and had determined that it would need to restate its financial statements to record adjustments related to these, the agency added.

Subsequent to that, the company was notified by its term loan B and certain unsecured creditors that it was not in compliance with financial reporting requirements and its term loan A and revolving credit lenders provided waivers for its lack of compliance through Sept. 22, the agency noted.

S&P said that the ratings on Cablevision reflect the solid investment-grade characteristics of Cablevision's core cable TV business composed of three million basic subscribers in the metropolitan New York/New Jersey area, adding that these favorable business characteristics are partly offset by the company's aggressive financial policy, including its April payment of a $3 billion dividend to shareholders.

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