S&P cuts Syniverse

S&P said it lowered its ratings for Syniverse Holdings Inc. and its senior secured first-lien debt to CCC+ from B-. The agency also cut the senior secured second-lien debt to CCC- from CCC.

“The downgrade reflects our belief that the sustainability of Syniverse's capital structure is dependent on a near-term rebound in international travel and roaming volumes given existing secular pressures in its mobile transactions business and elevated leverage,” said S&P in a press release.

“We now believe that international travel will remain weak for an extended period, dampening our expectations for the company's roaming revenue this year. We currently assume that the decline in mobile transactions revenue, which includes roaming, will accelerate in 2020,” the agency said.

The outlook is negative.

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