S&P ups GCI senior debt to BB-

Standard & Poor’s said it affirmed its BB- corporate credit rating on GCI Inc. The outlook is stable.

At the same time, S&P raised the issue-level rating on GCI’s senior unsecured debt to BB- from B+ and revised the recovery rating to 4 from 5. The 4 recovery rating reflects S&P’s expectation of “meaningful” (30%-50%; lower end of the range) recovery in the event of a payment default.

S&P also affirmed the BB+ issue-level rating, with a recovery rating of 1, on GCI’s senior secured debt. The 1 recovery rating reflects an expectation of “very high” (90%-100%) recovery of principal in the event of a payment default.

“Our raising of the senior unsecured issue-level rating reflects the improved recovery prospects of the senior unsecured debt resulting from debt reduction,” said S&P credit analyst Eric Nietsch in a news release. “We believe the improved recovery prospects would remain, even without the repricing transaction that the company is pursuing.”

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