Moody's: Charter may improve

Moody's Investors Service said it believes Charter Communications, Inc., already rated an unusually high Ba3 for a company having emerged from bankruptcy just over one year ago, has the ability to transition to investment grade over the next four years.

During that time, the agency said that it expects Charter's key credit metrics to improve, with financial leverage dropping to an estimated 3.2 times by 2014, down from 9.2 times in 2008, a year before it emerged from bankruptcy.

According to Moody's, revenue, EBITDA and free cash flow should continue to strengthen, although the latter may be somewhat constrained by bigger capital investments now that liquidity has dramatically improved.

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