Shares in Charter Communications Inc. closed at an all-time low of $1.51 per share Thursday, after hitting their previous low of $1.58
Wednesday, as investors continued to dump the stock two days after the MSO warned that a
loss in basic subscribers will make it miss third-quarter revenue estimates.
Charter's market capitalization now stands at a feeble $466 million.
Also Wednesday, Moody's Investors Service assigned its new 'Speculative Grade
Liquidity Ratings' (SGLs) to Charter and three other MSOs, which range from
SGL-1 (best) to SGL-4 (worst).
Charter earned an SGL-2 rating, which means 'the issuer has good liquidity
and is likely to meet its obligations over the next 12 months through internal
resources, but it may rely on external sources of committed financing.'
Cablevision Systems Corp. had the misfortune of getting the same grade as RCN
Corp.: an SGL-4. That means the cash-strapped companies 'possess weak liquidity.
They rely on external sources of financing and the availability of that
financing is, in Moody's opinion, highly uncertain.'
Cablevision stock dropped 9 percent to $8.35 per share Wednesday on the news, falling another 7.8 percent Thursday to close at $7.71,
while RCN fell 4 percent to 50 cents Wednesday before rebounding a bit Thursday, rising 14 percent to close at 57 cents each.
Like Charter, Mediacom Communications Corp. earned an SGL-2 rating.
Mediacom's stock also took a hit Wednesday, falling 12 percent to $4.87
apiece, and it dropped a further 7.8 percent Thursday, closing at $4.49 apiece.
Weekly digest of streaming and OTT industry news
Thank you for signing up to Multichannel News. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.