CORPORATESISSUER COMMENT 29 SEPTEMBER 2015CABLEVISION SYSTEMS CORPORATION (CVC)Moodys Senior Unsecured Rating B1Moodys Outlook RURBond-Implied Rating B3CDS-Implied Rating B3EDF-Implied Rating Baa2As of 9/28/2015ANALYST CONTACTSAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research, Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products. For further detail, please see the last page.Market Signals ReviewCablevision: Bond- and CDS-Implied Ratings Slip Lower The bond- and CDS-implied ratings for Cablevision both moved down over the past year and are now at their lowest levels of the last five years. Yet the EDF'-implied rating has never been better than its present Baa2 level (Figure 1).We believe the divergent results between Cablevisions fixed income oriented market-implied ratings and the EDF-implied rating may reflect the different pro-forma leverage and risk, owing to Cablevisions acquisition by Altice, borne by different classes of investors. Please see discussion below in the Moodys Ratings View section.FIGURE 1. CABLEVISION: MOODYS AND MARKET-IMPLIED RATINGS, LAST YEAR (MONTHLY DATA)MOODY'S ANALYTICS CORPORATES2 29 SEPTEMBER 2015 MARKET SIGNALS REVIEW: CABLEVISION: BOND- AND CDS-IMPLIED RATINGS SLIP LOWERThe bond-implied rating was B1 one year ago. Within the last year it deteriorated by five notches from its apex of Ba1 in May 2015 to B3 .The CDS-implied rating was B2 a year ago, rose to B1 and then, starting in February, sank to B2 and then B3, where it stands now.Cablevisions EDF'-implied rating climbed from Ba3 one year ago to Baa2 at present.According to our ratings gap-conditioned transition matrices, companies rated B1 with a bond-implied rating of B3 outperformed the broad market 52% of the time over the following 12 months, matched the markets performance 9% of the time, and underperformed the broad market 40% of the time.R...
