S&P: Rainbow on CreditWatch

Standard & Poor's said that it placed Rainbow Media Enterprises Inc. and Rainbow National Services LLC's BB corporate credit ratings on CreditWatch with negative implications.

Rainbow National's issue-level debt ratings, including its BBB- rating on $930 million of secured credit facilities and BB rating on $625 million of unsecured debt, were also placed on Credit Watch with negative implications.

The rating actions follow Cablevision's announcement that it will explore a potential leveraged, tax-free spinoff of its Rainbow Media Holdings LLC business to Cablevision's stockholders. The proposed new Rainbow entity would be a public company and own five national programming networks, S&P said.

The negative CreditWatch also indicates the lack of upside rating potential for a new Rainbow entity, the agency said.

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