Fitch rates CCO notes BB-

Fitch Ratings said it assigned a BB- rating to CCO Holdings, LLC's senior unsecured notes due 2021.

Proceeds from the proposed $1 billion offering are expected to be used for general corporate purposes including the repayment of term loans outstanding under Charter Communications Operating, LLC's senior secured credit facility.

CCO Holdings has a BB- issuer default rating BB+ senior secured term loan and BB- senior unsecured debt. Charter Communications Operating has a BB- issuer default rating, BB+ senior secured credit facility and BB+ senior secured second-lien notes.

The issuance is in line with Charter Communications, Inc.'s strategy of extending and improving the balance of its debt maturity profile and enhances the company's overall financial flexibility, the agency said.

The ratings incorporate Charter's more viable capital structure, increased financial flexibility and stable liquidity profile as well as Charter's size and scale, the agency said.

Ratings concerns center on Charter's elevated financial leverage, a comparatively weaker subscriber clustering profile and service penetration rates that lag behind industry leaders, the agency added.

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