Century Communications Sr Nts Rated 'BB-' by S&P.

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 10/7/97-- Standard & Poor's today assigned its double-'B'-minus rating to Century Communications Corp.'s $225 million 8.75% senior notes due 2007.

The double-'B' corporate credit rating and double-'B'-minus senior unsecured debt rating was affirmed.

Century Communications Corp.'s ratings reflect its sizable and high-margin cable TV operations, offset somewhat by its small interest in cellular properties and heavy use of debt. With over one million subscribers, the company ranks among the top-10 U.S. cable operators and is able to take advantage of cost efficiencies available to larger cable firms. Margins are above the average at over 50%, reflecting good cost control and increased clustering of systems. Detracting from this position is the firm's equity interest in the higher-risk cellular telephone business, with systems in mainly secondary areas. Additionally, the company has written down its investment in Australian pay-TV systems by $40 million and is in the process of selling its position.

Century's financial position remains in line with the current ratings. Cash flow interest coverage has improved to around 1.5 times (x) for the fiscal year end of May 31, 1997, and the recent payoff of high-rate debt and the firm's ability to raise service rates should allow for continued improvement. Debt leverage, adjusted for the Australian asset write-off, is also appropriate for the rating at around 7.1x, for fiscal 1997. Ongoing improvements in operating results are expected, but Standard & Poor's expects that the company's aggressive capital spending to support personal communications systems construction in Puerto Rico and cable system upgrades could delay meaningful improvement in leverage.

OUTLOOK: STABLE

The stable outlook incorporates the strong improving trend in the company's domestic cable operations through clustering, system trades, and system purchases. The cellular unit is also pursuing a similar strategy. However, Standard & Poor's feels that debt leverage has limited improvement potential because of likely debt financing of wireless communications assets and cable system expansion.--CreditWire

CONTACT: Scott Dinsdale, CFA, New York (1) 212-208-8933

Copyright 1997, Standard & Poor's Rating Services

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