Comcast Outlk Revised to Positive by S&P;Rtgs Afrmd Comcast Corp.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 6/16/98--Standard & Poor's today revised the outlook on Comcast Corp. to positive from stable. The outlooks on subsidiaries Comcast Cellular Corp., Comcast Cellular Holdings Inc., and Comcast Cable Communications Inc. also were revised to positive from stable. All ratings for Comcast were affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. , as listed below. The outlook change reflects the continued strength of the core cable business, and improvements in financial measures following deleveraging and a $1 billion investment by Microsoft Corp. For the 12 months ended March 31, 1998, debt to operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was low compared to most cable operators, at around 4.5 times (x). Comcast also has considerable flexibility given the stock proceeds from the recent sale of telephony interests in both Teleport Communications Group Teleport Communications Group (TCG) was the first Competitive local exchange carrier (CLEC) in the U.S. First formed in 1985, it competed with the existing telephone companies to provide dial tone and related services in the largest U.S. markets. and Sprint Spectrum L.P. Standard & Poor's estimates the value of these proceeds at about $2.5 billion. Standard & Poor's expects that Comcast will be able to maintain its strengthened financial position, even with continued opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. acquisitions like the recently announced investment in Jones Intercable Jones Intercable was a Cable TV company founded by Glenn Jones. Jones, already a cable television veteran, bought his first cable system in Georgetown, Colorado after taking a $400 loan on his Volkswagen. In 1993 30% of the company was purchased by BCI Telecom Holdings, Ltd. , which is likely to result in ultimate control of the company. In addition to acquisitions, Standard & Poor's expects capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. to be significant through 1998 and into 1999 as the company completes its plant rebuilding program. Newly upgraded cable plant will allow for increased channel capacity and new product introduction such as high-speed Internet See broadband. access through @Home, which should further improve the business profile. Comcast continues to benefit from diversity in cash flow from its majority owned and controlled electronic retailing subsidiary QVC QVC Quality Value Convenience QVC Question Valid Command , and subsidiary Comcast Cellular. QVC continues to have strong growth, although growth at the cellular segment reflects increased competition. Standard & Poor's continues to view these segments as more risky than the core cable business. OUTLOOK: POSITIVE Standard & Poor's expects that sometime in 1999, following the completion of current rebuilding activity, free cash flow will improve dramatically, which should warrant an upgrade. -- CreditWire -0-
RATINGS AFFIRMED
Comcast Corp.
Corp credit rtg BBB-
Sub debt BB+
Comcast Cellular Corp.
Corp credit rtg BBB-
Sr unsecd debt BB+
Comcast Cellular Holdings Inc.
Corp credit rtg BB+
Sr unsecd debt BB+
Comcast Cable Communications Inc.
Corp credit rtg BBB-
Sr unsecd debt BBB-
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