S&P cuts GTT

S&P said it lowered all its ratings for GTT Communications Inc., including the issuer rating to CCC- from CCC, by a notch.

“The downgrade reflects our view that GTT could pursue a distressed exchange or restructuring to address its very high debt levels. We believe that even after the company completes the $2.15 billion sale of its infrastructure division to I Squared Capital, its debt burden would still be elevated at about $1.8 billion,” S&P said in a press release.

S&P noted that under a new amendment to its priming delayed-draw credit facility, the company must work in good faith to enter an agreement with its lenders by March 31, 2021, to reduce its leverage to extend its forbearance with its lenders and noteholders to Sept. 30 from March 31.

The outlook is negative.

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