S&P puts Cablevision, Rainbow on watch

Standard & Poor's said it placed its long-term ratings for Cablevision Systems Corp. (Cablevision) on CreditWatch with negative implications, including the BB corporate credit rating, and also placed its ratings on Cablevision's Rainbow Media Enterprises Inc. (RME) unit on CreditWatch with negative implications, including the BB corporate credit rating.

However, S&P's 1 recovery rating of the bank loan at unit Rainbow National Services LLC is not on Watch. In addition, Cablevision's B-2 short term rating has been placed on CreditWatch with developing implications on a lack of information on the company's liquidity, pro forma for the Dolan family's proposed transaction related to Cablevision.

These actions follow the announcement that the Dolan Family Group has proposed to acquire the cable and telecommunications businesses of Cablevision and spin off the non-cable assets (to be known as Rainbow Media Holdings, including RME) to existing shareholders.

Other ratings on negative watch include Cablevision Systems Corp.'s senior unsecured debt at B+; CSC Holdings Inc.'s senior unsecured debt at BB- and subordinated debt at B+; and Rainbow National Services LLC's secured bank loan at BB+, senior unsecured debt at B+ and subordinated debt at B+.

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