Fitch Gives Its Insight on Insight


Fitch Ratings Ltd. said Friday that it has initiated coverage of Insight Communications Co. Inc.

The ratings firm said it anticipates that the MSO will generate approximately $50 million of free cash flow during 2004. Insight generated approximately $51 million of free cash flow during the first quarter.

The company’s strong first-quarter performance was attributable to lower cash-interest payments -- Insight's cash-interest payments on its bonds are due during the second and fourth quarters -- and a positive contribution from changes in working capital, Fitch said.

Fitch added that continued growth of high-margin products such as high-speed data and advanced digital products will be central to Insight’s ability to generate positive free cash flow in 2004.

Fitch’s report card: The ratings firm assigned a “CCC+” rating to Insight’s 12.25% senior discount notes due 2011; a “B+” to its 9.75% senior unsecured notes due 2009 and its 10.50% senior unsecured notes due 2010; and a “BB+” to the senior secured bank facility at holdings. Fitch added that the rating outlook for all of the ratings is “stable.”