U.S. cable operator Midcontinent Communications (Midcontinent) has signed an agreement to purchase assets from WideOpenWest Finance LLC (WOW) in Lawrence, Kansas for $215 million in cash. Midcontinent will partially finance the transaction with a $125 million add-on to its 6.875% senior notes due 2023. We are affirming our 'BB-'corporate credit rating on Midcontinent. We are also affirming the 'B' rating on Midcontinent's senior unsecured notes due 2021 and raising the rating on its senior secured debt to 'BB+' from 'BB'. The stable outlook reflects our expectation that Midcontinent will benefit from growth in high-speed data (HSD) and commercial services, and that competitive dynamics in its territories will remain favorable relative to other large incumbent cable operators such that leverage remains
