Moody's lifts Cincinnati Bell

Moody's Investors Service said it raised Cincinnati Bell's speculative grade liquidity rating to SGL-2 from SGL-3, primarily reflecting the company's improved liquidity, as it has largely repaid its revolving credit obligations and has built up a cash cushion to bolster the ongoing expansion of data center space.

In addition, Moody's said it recognizes the company's ability to generate more than $250 million in cash from operations over the next year, which should leave it in a good liquidity position overall.

As part of the rating action, Moody's said it upgraded the ratings on the company's existing senior unsecured debt to B1 from B2, in accordance with Moody's loss given default methodology, given the lower senior secured debt outstanding and Moody's expectations that the company's recently amended labor agreement with its primary union will change future pension obligations.

Moody's affirmed the company's B1 corporate family rating and the B1 probability of default rating.

The outlook is stable.

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