Time Warner Cable beat profit estimates and announced a $4 billion massive share buy-back on Thursday, sending shares up sharply, despite losing 155,000 basic cable subscribers.
"The business is generating a great deal of cash flow so that tends to cause us to deleverage. What we've been saying consistently is we will return capital to shareholders to maintain that leverage," Genn Britt, CEO of Time Warner Cable , told CNBC's "The Strategy Session" on Thursday.
"We need to keep the debt at a certain level. We think we need to be investment grade because we have a pretty big absolute amount of debt—over $20 billion—so we need access to the market. And in discussions with the rating agencies we've arrived at a target leverage of three and a quarter times EBITDA—that's really our North Star," Britt said.