S&P assigns RCN notes CCC+

Standard & Poor's said it assigned its CCC+ issue-level rating to $200 million of senior unsecured notes due 2020 to be privately placed by RCN Telecom Services LLC and co-issuer subsidiary RCN Capital Corp. to fund a special dividend.

The recovery rating on this debt is 6, indicating the expectation of negligible (0% to 10%) recovery in a payment default.

These notes replace the earlier-contemplated $200 million senior unsecured notes that were rated on May 28 but were not sold. The agency is withdrawing its CCC+ rating and 6 recovery rating on that issue.

Other ratings, including the B corporate credit rating, and the stable outlook are unaffected by the new notes.

S&P said its views RCN Telecom's business risk profile as "fair" reflecting the improved operating trends that began in 2012 along with favorable cable industry characteristics including revenue visibility from a largely subscription-based business model.

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