CORPORATESISSUER COMMENT 5 NOVEMBER 2015TIME WARNER CABLE, INC. (TWC)Moodys Senior Unsecured Rating Baa2Moodys Outlook RURBond-Implied Rating Baa3CDS-Implied Rating Baa3EDF-Implied Rating Aa2As of 11/04/2015ANALYST 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 ReviewTime Warner: Two Market-Implied Ratings Up The CDS- and EDF'-implied ratings for Time Warner are better than their lowest levels over the last month. The bond-implied rating matches its level of 30 days ago.The companys CDS-implied rating is Baa3. Over the period it briefly dipped to Ba1 on multiple dates. Time Warners EDF-implied rating is Aa2. One month ago it also stood at Aa2, but slipped lower to Aa3 on several occasions. The bond-implied rating has been Baa3 for each daily observation over the last month (Figure 1).FIGURE 1. TIME WARNER: MOODYS AND MARKET-IMPLIED RATINGS, 30 DAYS (DAILY DATA)According to our ratings gap-conditioned transition matrices, companies rated Baa2 with a bond-implied rating of Baa3 outperformed the broad market 40% of the timeMOODY'S ANALYTICS CORPORATES2 5 NOVEMBER 2015 MARKET SIGNALS REVIEW: TIME WARNER: TWO MARKET-IMPLIED RATINGS UPover the following 12 months, matched the markets performance 14% of the time, and underperformed the broad market 45% of the time.Readers will recall that when a market-implied rating is unchanged the underlying securities have matched the performance of the broad market, and when an implied-rating rises the underlying securities have outperformed the broad market. 1Time Warners CDS- and EDF-implied ratings gaps both match their levels of October 5, but are better than their low points over the last month. The CDS-implied ratings gap is -1 notch and is improved from its most recent ...
