Moody's cuts outlook on Charter Communications to stable from positive

Moody's Investors Service cut its outlook for Charter Communications to stable from positive. Ratings affected include the senior secured (stock only) debt and of the company's subsidiaries, rated Ba3, and their senior unsecured debt, rated B2, and the parent company's convertible senior unsecured debt rated B3. The action affects $19 billion of securities.

Moody's said its outlook revision reflects several factors which combined points to a reduced likelihood that Charter's debt will be upgraded, "at least not in their entirety, over the near-to-medium term rating horizon."

In particular, Moody's recalled its prior claim that the "absolute amount and mix of equity and other junior capital" raised earlier this year fell "somewhat short" of previous management guidance. Given the downward trend in Charter's since then, Moody's believes the chances of a follow-on offering are "greatly diminished."

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