S&P World stated it has raised its company credit standing on Mediacom Communications to BBB with a secure outlook, two notches above its earlier ranking of BB+ and spurred by the cable operator’s dedication to debt discount.
Mediacom has constantly decreased debt, decreasing its debt-to-EBITDA ratio to 2.four instances previously 12 months, nicely under S&P’s improve set off of three instances money movement, the credit standing company stated in a press launch.
As well as, S&P famous that Mediacom chairman, CEO and controlling shareholder Rocco Commisso has dedicated to protecting the corporate’s leverage ratio under Three instances “which supplies us with higher readability into Mediacom’s monetary coverage and potential for re-leveraging,” S&P stated within the launch.
S&P stated it has reassessed its scores motion triggers to raised mirror its extra favorable view of the telecom, cable and media enterprise.
An funding grade ranking typically implies that a company bond has a low threat of default. For an organization, that normally means higher entry to capital and decrease rates of interest.
“Our prepared entry to the monetary markets and our low value of debt capital clearly mirror that we’ve been granted funding grade therapy by buyers for the previous a number of years,” Commisso stated in a separate press launch. “I’m happy to see S&P additionally acknowledging, with a ‘double improve,’ that Mediacom has earned this enviable credit standing, given its sturdy working efficiency, top quality credit score metrics and rigorous monetary self-discipline.”
Within the second quarter, Mediacom added about 47,000 broadband prospects, greater than 3 times its additions within the prior 12 months, whereas video subscriber losses remained secure at about 17,000. Income for the interval was up 3% to $528.5 million and adjusted OIBDA rose 8% to $218.1 million.