Fitch gives BB+ to Charter notes

Fitch Ratings said it assigned a BB+ rating to CCO Holding, LLC's proposed issuance of senior unsecured notes due 2028.

CCO Holding is an indirect, wholly owned subsidiary of Charter Communications, Inc.

CCO Holding’s issuer default rating is currently BB+ with a stable outlook.

The company is expected to use net proceeds to pay related fees and expenses and for general corporate purposes, including potential buybacks of class A common stock of Charter or common units of Charter Communications Holdings, LLC (CCH), a subsidiary of Charter. As of March 31, Charter had $1.9 billion available under its class A common stock buyback program, an amount that excludes any potential buybacks of CCH common units.

Pro forma for debt issuance in April 2017 and subsequent note repurchases, Charter had about $61.8 billion of debt outstanding as of March 31, including $45.9 billion of senior secured debt.

Fitch said this new issuance is in line with its expectation that Charter will issue debt using additional debt capacity created primarily through EBITDA growth. Proceeds from future prospective debt issuances issued under additional debt capacity created are expected to be used for investment in the business, accretive acquisitions and shareholder returns.

Charter management has said it plans to target the low end of its target leverage range of 4 times to 4.5 times.

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