Moody's upgrades Cablevision

Moody's Investors Service said it upgraded to Ba3 from B1 the corporate family and probability-of-default ratings for Cablevision System Corp. and its wholly-owned indirect subsidiary Rainbow National Services LLC.

The agency upgraded Cablevision Systems' senior unsecured notes to B2 (LGD6, 93%) from B3 (LGD6, 93%); CSC Holdings, Inc.'s senior secured bank credit facilities to Ba1 (LGD2, 25%) from Ba2 (LGD2, 24%) and senior unsecured notes and debentures to B1 (LGD5, 74%) from B2 (LGD5, 73%); and Rainbow's senior secured bank credit facilities to Ba1 (LGD2, 23%) from Ba2 (LGD2, 24%), senior unsecured notes to B1 (LGD4, 68%) from B2 (LGD4, 69%) and senior subordinated notes to B2 (LGD5, 89%) from B3 (LGD5, 89%).

The outlook was changed to stable from developing.

Moody's said the upgrades reflect "difficult financial market conditions, including very tight credit and shareholder distaste for current valuations of cable companies, will likely preclude the Dolans from making a fourth run at taking the company private, even if they wanted to do so and thought that they could get it done at a lower price point," senior vice president Christina Padgett said in a written statement.

The upgrades are supported by Moody's expectation of continued improvements in fundamental operating performance and key credit metrics over the forward rating horizon, the agency said.

That's notwithstanding heightened competitive pressure and uncertainty with respect to the magnitude of the potentially adverse impact from a lingering recessionary economic environment.

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