S&P rates Comcast notes BBB+

Standard & Poor's said it assigned a BBB+ rating to Comcast Corp.'s proposed $250 million notes due 2055, which will be drawn down under the company's BBB+ universal shelf and will be guaranteed by all of the company's cable operating subsidiaries. The BBB+ long-term and A-2 short-term corporate credit ratings were affirmed, and the outlook is stable.

Proceeds will be used for working capital and general corporate purposes, which may include funding the repayment of a portion of the company's 8.3% notes due 2006.

S&P said the ratings on Comcast reflect the company's strong business position as the largest U.S. cable operator, good advanced services revenue growth, the agency's expectations that the company will maintain a solid competitive position against direct-to-home satellite TV and rising telephone company competition, cost advantages related to large scale, growth prospects for voice-over-Internet protocol telephony and a moderate financial policy.

Tempering factors include mature growth prospects for basic video services, direct-to-home video competition and the potential for longer-term competition from the regional Bell operating companies in the core video business, the agency said.

Debt to EBITDA was about 2.8x at Dec. 31.

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