Second-largest incumbent player in the relatively stable U.S. cable industry, with good geographic diversity. Programming procurement benefits associated with scale. Above-average broadband penetration levels providing good revenue visibility. Lower-margin video profitability under pressure from shifting technology, consumer preferences and rising programming costs. Relatively steady credit metrics through 2018 as higher debt to fund shareholder returns and/or M&A offsets the favorable impact of earnings growth. Financial policy includes stated leverage target of 4x-4.5x. Free operating cash flow (FOCF)-to-debt between 6%-8% with elevated capital expenditures to support all-digital rollout through 2018. No material cash income taxes through 2018 from sizeable tax assets. S&P Global Ratings' stable outlook on Charter Communications Inc. reflects our expectation that debt-to-EBITDA will be sustained between 4.0x-4.5x over
