S&P assigns BBB- to Charter secured notes

S&P said it assigned its BBB- issue-level and 1 recovery rating to Charter Communications Operating LLC's proposed secured notes. The 1 recovery rating indicates an expectation for very high (90%-100%; rounded estimate: 95%) recovery for noteholders in a hypothetical default.

Parent Charter Communications Inc. also plans to issue an add-on to the 4.5% unsecured notes due in 2033 issued by CCO Holdings LLC. The BB issue-level rating and 5 recovery rating on these notes are unchanged, indicating an expectation for modest (10%-30%; rounded estimate: 15%) recovery.

The company plans to use proceeds for general corporate purposes, which may include share repurchases and debt repayment.

“Our BB+ issuer credit rating on Charter is unchanged because we expect the company to maintain debt to EBITDA at the higher end of its 4x-4.5x target range,” S&P said in a news release.

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