MOODY'S PLACES RAINBOW NATIONAL SERVICES ON REVIEW FOR POSSIBLE UPGRADE
DUE TO CABLEVISION'S ANNOUNCEMENT TO EXIT ITS SATELLITE BUSINESS
Approximately $1.8 billion in debt instruments rated.
New York, January 21, 2005 -- Moody's Investors Service placed the ratings of Rainbow National Services LLC ("Rainbow") on review for possible upgrade following Cablevision Systems Corporation's announcement that Rainbow DBS will sell its Rainbow 1 direct broadcast satellite and certain other related assets to a subsidiary of EchoStar for $200 million in cash. Moody's views Rainbow Media's strategy (Rainbow National's parent) to exit the satellite business as a credit positive for the company given that Rainbow Media planned to fund the DBS segment's development with Rainbow National's cash flow.
The review will focus on Moody's assessment of: (1) the increasing uncertainty regarding Rainbow's long term business and financial strategy following the exit from the satellite business; (2) the improvement to credit metrics as Rainbow National will no longer be funding the large capital expenditures necessary to develop the DBS segment; (3) the costs associated with closing down the operations of VOOM; (3) the likelihood that VOOM will remain a cash drain to Rainbow Media over the near term as the company services its existing customers; and (4) the potential for the parent company to continue to utilize Rainbow National as the funding vehicle for other speculative investments.
The following ratings are under review for possible upgrade:
(1) B1 rating on the $350 million senior secured revolving credit facility,
(2) B1 rating on the $600 million senior secured Term Loan B,
(3) B3 rating on the $300 million of senior unsecured notes due 2012,
(4) Caa1 rating on the $500 million of senior subordinated notes due 2014,
(5) B2 senior implied rating, and
(6) B3 senior unsecured issuer rating.
Rainbow National Services LLC, headquartered in Jericho, NY, supplies television programming to cable television and direct broadcast service providers throughout the United States. The company operates three entertainment programming networks, American Movie Classics (AMC), WE: Women's Entertainment (WE), and The Independent Film Channel (IFC).
Copyright 2005, Moody's Investors Service, Inc. and/or its licensors including Moody's Assurance Company, Inc. (together, "MOODY'S"). All rights reserved.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, such information is provided "as is" without warranty of any kind and MOODY'S, in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such information. Under no circumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. The credit ratings and financial reporting analysis observations, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER. Each rating or other opinion must be weighed solely as one factor in any investment decision made by or on behalf of any user of the information contained herein, and each such user must accordingly make its own study and evaluation of each security and of each issuer and guarantor of, and each provider of credit support for, each security that it may consider purchasing, holding or selling. MOODY'S hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MOODY'S have, prior to assignment of any rating, agreed to pay to MOODY'S for appraisal and rating services rendered by it fees ranging from $1,500 to $2,300,000. Moody's Corporation (MCO) and its wholly-owned credit rating agency subsidiary, Moody's Investors Service (MIS), also maintain policies and procedures to address the independence of MIS's ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually on Moody's website at www.moodys.com under the heading "Shareholder Relations - Corporate Governance - Director and Shareholder Affiliation Policy."
DUE TO CABLEVISION'S ANNOUNCEMENT TO EXIT ITS SATELLITE BUSINESS
Approximately $1.8 billion in debt instruments rated.
New York, January 21, 2005 -- Moody's Investors Service placed the ratings of Rainbow National Services LLC ("Rainbow") on review for possible upgrade following Cablevision Systems Corporation's announcement that Rainbow DBS will sell its Rainbow 1 direct broadcast satellite and certain other related assets to a subsidiary of EchoStar for $200 million in cash. Moody's views Rainbow Media's strategy (Rainbow National's parent) to exit the satellite business as a credit positive for the company given that Rainbow Media planned to fund the DBS segment's development with Rainbow National's cash flow.
The review will focus on Moody's assessment of: (1) the increasing uncertainty regarding Rainbow's long term business and financial strategy following the exit from the satellite business; (2) the improvement to credit metrics as Rainbow National will no longer be funding the large capital expenditures necessary to develop the DBS segment; (3) the costs associated with closing down the operations of VOOM; (3) the likelihood that VOOM will remain a cash drain to Rainbow Media over the near term as the company services its existing customers; and (4) the potential for the parent company to continue to utilize Rainbow National as the funding vehicle for other speculative investments.
The following ratings are under review for possible upgrade:
(1) B1 rating on the $350 million senior secured revolving credit facility,
(2) B1 rating on the $600 million senior secured Term Loan B,
(3) B3 rating on the $300 million of senior unsecured notes due 2012,
(4) Caa1 rating on the $500 million of senior subordinated notes due 2014,
(5) B2 senior implied rating, and
(6) B3 senior unsecured issuer rating.
Rainbow National Services LLC, headquartered in Jericho, NY, supplies television programming to cable television and direct broadcast service providers throughout the United States. The company operates three entertainment programming networks, American Movie Classics (AMC), WE: Women's Entertainment (WE), and The Independent Film Channel (IFC).
Copyright 2005, Moody's Investors Service, Inc. and/or its licensors including Moody's Assurance Company, Inc. (together, "MOODY'S"). All rights reserved.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, such information is provided "as is" without warranty of any kind and MOODY'S, in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such information. Under no circumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. The credit ratings and financial reporting analysis observations, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER. Each rating or other opinion must be weighed solely as one factor in any investment decision made by or on behalf of any user of the information contained herein, and each such user must accordingly make its own study and evaluation of each security and of each issuer and guarantor of, and each provider of credit support for, each security that it may consider purchasing, holding or selling. MOODY'S hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MOODY'S have, prior to assignment of any rating, agreed to pay to MOODY'S for appraisal and rating services rendered by it fees ranging from $1,500 to $2,300,000. Moody's Corporation (MCO) and its wholly-owned credit rating agency subsidiary, Moody's Investors Service (MIS), also maintain policies and procedures to address the independence of MIS's ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually on Moody's website at www.moodys.com under the heading "Shareholder Relations - Corporate Governance - Director and Shareholder Affiliation Policy."
