S&P drops Charter

Standard & Poor's said it lowered the corporate credit ratings on Charter Communications Inc. and its subsidiary Charter Communications Holdings LLC to SD from CCC+ to indicate a selective default.

At the same time, the agency said it lowered to D the ratings on Charter's $862.5 million convertible notes and on an aggregate $1.66 billion of Charter Holdings notes with maturities from 2009 to 2012 that were the objects of exchange offers.

The agency said that the ratings were removed from CreditWatch, where they were placed with negative implications on Aug. 15.

Subsequent to the downgrades, the agency said it reassigned the corporate credit ratings on Charter and Charter Holdings, at CCC+, with a negative outlook and also raised to CCC- from D the ratings on the untendered balances of the notes that were the objects of the exchange offers.

The rating actions follow the completion of the company's convertible debt and senior debt exchange offers, which we view as tantamount to a default on their original terms, S&P said.

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