Research Update: Charter Communications Inc. Rating Triggers Loosened On Secular Shift Toward Broadband; 'BB+' Rating Affirmed

S&P Global Ratings recently completed a sector review and ranked its rated cable operators, reflecting a more favorable view of the industry given the increasing importance of high-speed internet whereby incumbent cable operators enjoy a sustainable competitive advantage in most markets. We rank Charter Communications Inc. No. 2 because of its growing subscriber base, leading broadband penetration, large scale of operations, and broad geographic diversification, factors that are partly offset by lagging profitability metrics compared with top-ranked Comcast Corp. and some other peers. Based on a more favorable view of the business over the next few years, we are loosening our upgrade and downgrade leverage thresholds by 0.25x (to below 4.25x and above 5x, respectively). We are affirming all ratings,

...- S&P Global Ratings recently completed a sector review and ranked its rated cable operators, reflecting a more favorable view of the industry given the increasing importance of high-speed internet whereby incumbent cable operators enjoy a sustainable competitive advantage in most markets. - We rank Charter Communications Inc. No. 2 because of its growing subscriber base, leading broadband penetration, large scale of operations, and broad geographic diversification, factors that are partly offset by lagging profitability metrics compared with top-ranked Comcast Corp. and some other peers. - Based on a more favorable view of the business over the next few years, we are loosening our upgrade and downgrade leverage thresholds by 0.25x (to below 4.25x and above 5x, respectively). - We are affirming all ratings, including our '##+' issuer credit rating. - The stable outlook reflects our view that an upgrade is unlikely over the next year, given management's targeted leverage of up to 4.5x, though...

Research Update