Fitch rates Charter notes CCC

Fitch Ratings said it assigned a CCC rating to the $250 million 10¼% senior notes due 2013 and $146.2 million 10¼% senior notes due 2013 issued by CCH II, LLC and a CCC rating to the $456.6 million senior secured notes due 2015 issued by CCH I, LLC.

CCH II, LLC and CCH I, LLC are indirect subsidiaries of Charter Communications, Inc., which has an issuer default rating of CCC. The notes are being offered as part of a debt exchange launched by CCH I and CCH II for various debt securities issued by Charter Communications and Charter Communications Holdings, LLC.

The outlook for Charter and its subsidiaries is stable.

Overall, Fitch said its ratings reflect a highly levered balance sheet and the absence of any meaningful prospects to delever its balance sheet over the current rating horizon. The ratings incorporate the agency's expectation that Charter will continue to generate negative free cash flow given the company's capital structure, ongoing capital expenditures and the increasing cash interest requirements on debt that has converted or is scheduled to convert to cash interest payment.

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