S&P Places Charter Communications (CHTR) on CreditWatch Positive

Standard & Poor's Ratings Services today said it placed all of its ratings, including its 'BB-' corporate credit rating, on Charter Communications Inc. (Nasdaq: CHTR), on CreditWatch with positive implications.

"The positive CreditWatch listing reflects our view of Charter's materially increased scale and improved leverage metrics pro forma for the pending system swaps and acquisitions with Comcast Corp., as well as the newly announced acquisition of BHN," said Standard & Poor's credit analyst Michael Altberg.

In addition to shareholder approval, the acquisition of BHN is contingent on the expiration of Time Warner Cable Inc. (TWC)'s right of first offer for BHN, the regulatory approval of the pending Comcast and TWC deal, and the close of Charter's previously announced transactions with Comcast. As a result, if the Comcast and TWC deal is not approved, any potential rating upgrade or affirmation of the existing 'BB-' rating on Charter would be dependent on Charter's alternative strategy around consolidation.

The CreditWatch listing reflects the potential for at least a one-notch upgrade, depending on the regulatory approval and close of the pending Comcast and BHN transactions. Key considerations will include the company's longer-term financial policy and leverage target, especially in respect to the potential for additional acquisitions or the purchase of increased equity interests in GreatLand or Charter partnership over time.

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