Moody's trims WideOpenWest

Moody's Investors Service said it downgraded WideOpenWest Finance, LLC's ratings including its corporate family rating to B2 from B1, its probability of default rating to B2-PD from B1-PD, and its senior secured revolving credit facility and senior secured term loan B ratings to B2 from B1. Moody's also lowered WOW's speculative grade liquidity rating to SGL-3 from SGL-2.

“The downgrade of the ratings is due to negative competitive headwinds for the company's most important product, high-speed data (HSD). Included in WOW's Q3 2023 earnings results the company reported a net HSD subscriber loss of about 4,400 and stated that subscriber losses could be three times as much for Q4. More aggressive competitive pressures in the lower-price-sensitive tier of subscribers, the company's sweet spot, particularly from fixed wireless inroads in legacy markets coupled with rate increases and macroeconomic environmental issues are the main factors behind the recent uptick in churn.

“Additionally, the company's pace of expansion into new markets is behind schedule with lower-than-expected take up which has led to fewer than expected gross connects,” Moody’s said in a press release.

WOW's outlook is stable.

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