Analysts positive on AMC Networks prospects

Credit ratings agency Moody’s says it expects AMC Networks to perform strongly. The new company will house the cable channels formerly contained in US MSO Cablevision’s Rainbow Media unit.
AMC Networks channel brands include AMC, IFC, Sundance Channel, WE tv and Wedding Central with Sundance and We tv currently the only two operating outside the US.

Moody’s said it expects “continued strong operating performance of the core networks (AMC, WE tv, IFC and Sundance Channel) and strong free cash flow generation used to repay debt.”

Moody’s added that there is a risk associated with new NASDAQ-listed entity generating most of its revenues from one part of the business – AMC is responsible for about 50% of turnover – but that it expects strategic buyers are likely to pay a healthy multiple should one attempt to acquire the new company.

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