New York, November 01, 2013 -- Moody's Investors Service said that Time Warner Cable Inc.'s likely continuing subscriber loss trend will put further negative pressure on the company's ratings. During the third quarter, the company faced further residential subscriber losses and its basic video penetration dropped to under 40%. Moody's had anticipated a drop in basic penetration by year-end 2013 and had indicated in previous publications over the last two years, that the company's ratings would come under pressure without commensurate gradual leverage reductions to mitigate the competitive retention weakness. Relative to the company's present Baa2 and Prime-2 ratings, Moody's has reduced what we believe is the appropriate sustained leverage ceiling from 3.50x to 3.25x debt-to-EBITDA (excluding debt issued to prefund near term maturities), which is compatible with the company's net leverage target of 3.25x including our typical adjustments.

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