Moody's affirms Rainbow National, cuts some loans

Moody's Investors Service said it affirmed Rainbow National Services LLC, a wholly-owned indirect subsidiary of Cablevision Systems Corp., Ba3 corporate family and probability-of-default ratings, B1 ratings (LGD5, 74% from LGD4, 68%) for senior unsecured notes and B2 ratings (LGD6, 91% from LGD5, 89%) for senior subordinated notes.

Moody's downgraded the senior secured bank credit facilities to Ba2 (LGD2, 28%) from Ba1 (LGD2, 23%), following an incremental $280 million add-on to the issuer's revolving credit facility.

The outlook is stable.

Ratings reflect the risks associated with the company's moderately high financial leverage, shareholder-oriented fiscal strategies and concentrated asset and customer bases, Moody's said.

These risks remain balanced by the underlying value of the company's primary assets and the free cash flow they generate, along with a strong liquidity profile, the agency noted.

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