Sanford Bernstein Says Cable Operators (CMCSA, TWC) Likely To Face Higher Borrowing Costs

Sanford Bernstein came out with a report today that said cable operators likely to face higher borrowing costs. Sanford Bernstein analyst Craig Moffett said Comcast (Nasdaq: CMCSA) and its competitors are likely to face higher borrowing costs because of the credit squeeze. On top of the higher borrowing costs, the cable industry's growth will likely slow.

Bernstein's Moffett lowered Comcast's 2009 earnings-per-share estimate by 11 cents to $1.09 and Time Warner Cable's (NYSE: TWC) by 8 cents to $1.18. In addition, to cutting his '09 EPS targets for 2009 for Comcast and Time Warner, he also lowered his price targets on the two stocks by at least 20%, to $24 and $33, respectively.

Moffett said the credit crunch will have "significant implications. Customers too, will feel the impact,'' which will likely result in slower growth for companies like Comcast, Time Warner Cable and Cablevision (NYSE: CVC).

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