Fitch rates Charter notes BBB-

Fitch Ratings said it expects to assign a BBB- rating to CCO Safari II, LLC’s multi-tranche issuance of benchmark-sized senior secured notes following the assumption of the senior secured notes by Charter Communications Operating, LLC.

CCO will assume the notes upon the completion of Charter Communications, Inc.’s merger with Time Warner Cable, Inc. and acquisition of Bright House Networks.

If the Time Warner merger does not occur, the notes are required to be repaid, Fitch said.

CCO Holding LLC’s and CCO’s current BB- issuer default ratings remain on Rating Watch positive following news of the merger agreement.

CCO Safari was created to allow Charter to opportunistically pre-fund the transactions, with the proceeds placed into escrow until the transactions are completed, Fitch said.

The agency said it views both transactions positively and believes they will strengthen Charter’s overall credit profile.

Fitch said it anticipates that Charter’s total leverage for both mergers will be less than 5.0x at closing.

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