CORPORATESISSUER COMMENT 19 MAY 2015COMCAST CORPORATION (CMCSA)Moodys Senior Unsecured Rating A3Moodys Outlook POSBond-Implied Rating A1CDS-Implied Rating A2EDF-Implied Rating AaaAs of 5/18/2015ANALYST 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 ReviewComcast Corporation: Market-Implied Ratings Stable Following Failed Time Warner Cable Bid The CDS-, EDF'- and bond-implied ratings for Comcast have all been relatively stable since the company announced on April 29 that its attempt to buy Time Warner Cable had failed.The CDS-implied rating for Comcast was A1 a month ago (Figure 1). It maintained that level until May 15, when it dipped to A2 for a single day, and thereafter returned to A1 again.Comcasts EDF-implied rating was Aaa2 on April 18 (Figure 1). It has not changed from that level.One month ago the bond-implied rating for Comcast was A2. Except for one day (April 23) when it moved up to A1 and one day (May 14) when it fell to A3, it has maintained the A2 level.FIGURE 1. COMCAST: MOODYS AND MARKET-IMPLIED RATINGS, LAST 30 DAYS (DAILY DATA)MOODY'S ANALYTICS CORPORATES2 19 MAY 2015 MARKET SIGNALS REVIEW : COMCAST CORPORATION: MARKET-IMPLIED RATINGS STABLE FOLLOWING FAILED TIME WARNER CABLE BIDAccording to our ratings gap-conditioned transition matrices, companies rated A3 with a bond-implied rating of A1 outperformed the broad market 23% of the time over the following 12 months, matched the markets performance 16% of the time, and underperformed the broad market 60% of the time.The EDF-implied ratings gap remained at +6 notches every day over the last month (Figure 2). The bond-implied ratings gap has shifted between +2 notches to zero notches over the last month, and currently stands at +1 notch, matching...
