CHICAGO--(BUSINESS WIRE)--Link to Fitch Ratings' Report: U.S. Telecom and Cable Stats Quarterly -- Fourth-Quarter 2013
According to a new report issued today by Fitch Ratings, Fitch believes Comcast Corporation's (Comcast) merger with Time Warner Cable, Inc. (TWC) is strategically sound and creates significant opportunities to realize operating and capital spending efficiencies with minimal execution risk. The all-stock consideration structure of the merger is not expected to have a material impact on Comcast's credit protection measures. Fitch expects Comcast's credit profile will strengthen on a pro forma basis with consolidated pro forma leverage of 2.2x by year-end 2014, approaching 2.0x by the end of 2015 in the absence of significant cost or operating synergies.
Fitch recently affirmed Comcast's IDR at 'A-' following the company's announcement that it will divest approximately 3.9 million video subscribers to Charter Communications, Inc. (Charter) following the closing of the Comcast and TWC merger. The company will utilize proceeds of approximately $14 billion from the asset divestitures to reduce outstanding debt and expand its share buyback program. Comcast has the potential to realize approximately $1.5 billion of efficiencies from the combined entity. The cable systems to be divested generate approximately $3 billion of EBITDA. The loss of EBITDA generation will be offset by approximately $9 billion of debt reduction.
Fitch's 'U.S. Telecom and Cable Stats Quarterly' provides a summary of operating performance, credit metrics, and liquidity positions of the companies in the telecommunications sector of Fitch's rating universe over the past four years, as well as key credit strengths and concerns as of the end of 4Q'13.
The full report 'U.S. Telecom & Cable Stats Quarterly (Fourth-Quarter 2013)' is available at 'www.fitchratings.com' or by clicking on the link above.
Additional information is available at 'www.fitchratings.com'.